Assignment

Assignment Choice #1: Title: Gift Tax Elements

Determine the taxable gift in each of the following unrelated scenarios:

1. Abram is single and gives $35,000 to each one of his eight grandchildren.
2. Jacob is married and gives $35,000 to each one of his eight grandchildren. He and his wife gift split.
3. In January, Curt sells YTM stock (FMV = $30,000) to Martina for $20,000.
4. David sells a $500,000 real estate property to Joe for $100,000.
5. In the ordinary course of business, Joe sells a diamond ring valued at $30,000 for $15,000 to a customer named Donna.

Determine the items exempt from gift tax that were paid by Yancey:

1. College expenses for his son paid directly to the institution
   1. Tuition = $20,000
   2. Room and Board = $10,000
2. Transfer to Throw Them All Out political party = $3,000
3. College expenses for his daughter paid directly to her
   1. Tuition = $35,000
   2. Room and Board = $10,000
4. Medical expenses for his son = $20,000
5. Medical expenses for his son’s friend Sergio = $5,000

Determine the annual exclusion in each of the following unrelated scenarios:

1. Craig gives $14,000 in cash to each of his 10 children.
2. John gives $20,000 in cash to each of his 10 children.
3. Jay establishes a $1,000,000 insurance policy that will be paid equally to his 10 children upon his death.
4. Terrence has a $500,000 piece of real estate property in an irrevocable trust that will pay income to his 10 children at the discretion of the trustee.

Requirements:

Clearly identify the requirements being addressed. Show all calculations within the cells of an Excel spreadsheet. This means that you must use formulas and links so that your thought process can be examined. Make good use of comments to convey your thought process as well. No hard coding of solutions is permitted. Submit a single MS Excel file for grading.

"Looking for a Similar Assignment? Order now and Get 10% Discount! Use Code "GET10" in your order"