George and Martha, spouses, made a number of gifts during 2018. Their accountant is trying to help
Question:
George and Martha, spouses, made a number of gifts during 2018. Their accountant is trying to help them decide whether to elect gift splitting. If they elect gift splitting, each spouse will have $8 million of taxable gifts. If they do not elect gift splitting, George's taxable gifts will be $2 million, and Martha's will be $14 million. For simplicity, assume all gifts are of remainder interests. George has not made any earlier taxable gifts, but Martha made $250,000 of taxable gifts in 2009. Calculate the amount of gift tax each spouse will owe if they elect gift splitting and if they do not elect gift splitting for 2018. What do you recommend they do concerning the election to split gifts?
Step by Step Answer:
Global Taxation How Modern Taxes Conquered The World
ISBN: 9780192897572
1st Edition
Authors: Philipp Genschel, Laura Seelkopf