Exercise $18-21($Algorithmic$)($LO$.4)$

During the year, Rajeev makes the following transfers.

$$6,375$ to his mayor's reelection campaign.

$$27,750$ to his aunt, Ava, to reimburse her for what she paid the hospital for her gallbladder operation.

$$14,935$ paid directly to the surgeon who performed Ava's gallbladder operation.

$$8,040$ to purchase a used pickup car for his son to use at college.

Determine the amount of transfers that are subject to the Federal gift tax. $($Include the total amount and disregard the annual exclusion.$)$

Check My Work

In working with the gift tax, it is first necessary to determine whether a gift has in fact taken place. In addition, some transfers are excluded from

the gift tax. Whether a transfer is subject to the Federal gift tax depends upon the application of $2511$ through $2519$ and the applicable

Regulations. During the year, Rajeev makes the following transfers.

$$6,375$ to his mayor's reelection campaign.

$$27,750$ to his aunt, Ava, to reimburse her for what she paid the hospital for her gallbladder operation.

$$14,935$ paid directly to the surgeon who performed Ava's gallbladder operation.

$$8,040$ to purchase a used pickup car for his son to use at college.

Determine the amount of transfers that are subject to the Federal gift tax. $($Include the total amount and disregard the annual exclusion.$)$

$$\_\_\_\_\_\_\_$

In working with the gift tax, it is first necessary to determine whether a gift has in fact taken place. In addition, some transfers are excluded from the gift tax. Whether a transfer is subject to the Federal gift tax depends upon the application of $2511$ through $2519$ and the applicable Regulations.