On January 15, 2018, Eileen, age 24, receives stock worth $30,000 as a gift from her parents. Her parents jointly purchased the stock six years ago for $14,000. During the year, Eileen receives $2,100 dividend income on the stock. In December, she sells the stock for $41,000.
a. Assuming this is Eileen’s only income for the year, and her parents are in the 24 percent marginal tax bracket, how much income tax does the family save as a result of this gift?
b. Are there any transfer taxes as a result of this gift? Explain.