Sondra and Jason, a wealthy married couple, won $96 million in a 2017 Powerball drawing. They decided

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Sondra and Jason, a wealthy married couple, won $96 million in a 2017 Powerball drawing. They decided to share some of this new wealth immediately with some of their friends and family. They paid $1,800,000 on a new home for Sondra’s parents, titling the home jointly in the parents’ names; bought a condominium on Captiva Island for Jason’s widowed mother for $950,000; gave $1 million to a local charity that provides homes and job training for homeless families; sent $150,000 to Stanford University to be used for their nephew’s college tuition for his next 4 years in school; gave $500,000 each to Sondra’s sister and Jason’s brother for new homes; gave $750,000 to the best man at their wedding last year to defray the costs of a needed kidney transplant; and finally donated $250,000 to their church to build a wedding chapel. The only taxable gift previously made by either Sondra or Jason was a $200,000 cash gift in 2014 by Jason to the widow of an employee who had been killed in an auto accident. This gift was made prior to their marriage. Sondra and Jason elect gift splitting. Determine their separate total taxable gifts and the gift taxes they will owe after applying each of their lifetime unified credits.

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Related Book For  answer-question

Taxation For Decision Makers 2018

ISBN: 9781119373735

8th Edition

Authors: Shirley Dennis Escoffier, Karen Fortin

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