In prior (pre-2011) years, Lyle had made taxable gifts (i.e., any annual exclusion(s) have been subtracted) totaling $2 mil., all of which were made to grandchildren. Accordingly, $2 mil. of Lyle's GST exemption had been allocated to these gifts.

During the current year (2015), another $4 mil. of taxable gifts (i.e., annual exclusion(s) have already been subtracted) were made to Lyle's grandchildren. Lyle did not allocate any of his remaining GST exemption to the current year gifts, because, by 2014 (the year before), all of his children had died.

Determine the GST due, if any, on Lyle's gifts in the current year.

a. None of the other answers is correct.

b. $1,600,000

c. $0

d. $400,000

e. $228,000

Answer rating: 100% (QA)

Total Generation Skipping Transfer GST Exemption available for the year 2015 5430000 ... View the full answer