Donald transferred stock in his closely held corporation to his daughter valued at $6 million. Donald and
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Question:
Donald transferred stock in his closely held corporation to his daughter valued at $6 million. Donald and his wife, Alexis, elected to split the gift pursuant to § 2513. The transfer generated a gift tax liability of $700,000 for Donald and $300,000 for Alexis, but Donald paid the entire $1 million gift tax liability out of his funds. Donald died two years after the gift.
- Are there any gift tax consequences to Donald from paying the portion of the gift tax liability owed by Alexis?
- What are the estate tax consequences to Donald?
Related Book For
Federal Taxation 2021 Corporations, Partnerships, Estates & Trusts
ISBN: 9780135919460
34th Edition
Authors: Timothy J. Rupert, Kenneth E. Anderson, David S. Hulse
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