[Anonymous]

Wiley Question –

Jan, an unmarried individual, gave the following outright gifts in 2013:
Jones, 16,000, down payment on house
Craig, 15,000, college tuition
Kandle, 5,000, vacation trip

Answer and Explanation:
This answer (33,000) is correct. In computing a donor’s gift tax, the first $14,000 ($13,000 for 2012) of gifts of a present interest made to a donee during a calendar year is excluded in determining the amount of the donor’s taxable gifts. Thus, $14,000 of the $16,000 given to Jones, $14,000 of the $15,000 given to Craig, and all $5,000 given to Kande can be excluded, resulting in a total exclusion of $33,000.

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I was just wondering, shoudn’t the college tuition gift be excluded in full, as in not subject to the 14,000 limit?

 

 

[stoleway]

The college tuition was handed over to Craig.

It would have been excluded if it was directly paid out to the school.

REG -63│ 84!!
BEC- 59│70│ 71 │78!
AUD- 75!
FAR- 87!

Mass-CPA

[stoleway]

The college tuition was handed over to Craig.

It would have been excluded if it was directly paid out to the school.

REG -63│ 84!!
BEC- 59│70│ 71 │78!
AUD- 75!
FAR- 87!

Mass-CPA

[Anonymous]

Ah, gotcha. Thanks for clarifying 🙂

[Anonymous]

Ah, gotcha. Thanks for clarifying 🙂

[Author]

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