GIFT TAX RETURN PROBLEM

Using Property, she inherited, Tracy makes a cash gift of $16.2 million to her adult daughter, Taylor, in 2020.Neither Tracy nor her husband, Mike, has made any prior taxable gifts. They do not live in a community property state.Determine the Federal gift tax liability if:

1.The election to split gifts is not made (5 points)

2.The election to split gifts is made. (5 points)

3.What are the tax savings from making the election?(5 points)

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