Brad and Angelina are a wealthy couple who have three children, Fred, Bridget, and Lisa. Two of
Question:
Brad and Angelina are a wealthy couple who have three children, Fred, Bridget, and Lisa. Two of the three children, Fred and Bridget, are from Brad’s previous marriages. On Christmas this year Brad gave each of the three children a cash gift of $10,000 and Angelina gave Lisa an additional cash gift of $40,000. Brad also gave stock worth $40,000 (adjusted basis of $10,000) to the Actor’s Guild (an “A” charity).
a. Brad and Angelina have chosen to split gifts. Calculate Brad’s gift tax. Assume that Angelina has no previous taxable gifts, but Brad reported previous taxable gifts of $2 million in 2009 when he used $345,800 of unified credit and paid $435,000 of gift taxes.
b. Fill out parts 1 and 4 of Form 709 for Brad.
Form 709:
Step by Step Answer:
Taxation Of Individuals And Business Entities 2015
ISBN: 9780077862367
6th Edition
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver