Using property she inherited, Lei makes a $2023$ gift of $$16,200,000$ to her adult daughter, Doris. Neither Lei nor her spouse, Greg, have

made any prior taxable gifts.

Assuming that a flat $40\%$ tax rate applies, determine the Federal gift tax liability if $($a$)$ the election to split gifts is not made and $($b$)$ the

election to split gifts is made. $($c$)$ What are the tax savings from making the election?

The unified transfer tax exclusion amount for $2023$ is $$12,920,000.$

If an amount is zero, enter $"0".$

a$.$ If the election to split gifts is not made, the taxable gift is :

$x$ and gift tax due on the gift is $

X $.$

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Married donors residing in community property jurisdictions possessed a significant gift tax advantage over those residing in common law states.

To rectify this inequity, Section $2513$ was enacted. Per $2513,$ a gift made by a person to someone other than their spouse may be considered,

for Federal gift tax purposes, as having been made one$-$half by each spouse.

b$.$ If the election to split gifts is made, then the taxable gift from Lei is $

$x$ and from Greg is $

$x.$

Gift tax due from Lei is $

and from Greg is $

$x.$

Incorrect

c$.$ The tax savings from making the election is &

$x.$