For the holildays, Marty gave a watch worth $21,800 to Emily and jewelry worth $
ID: 2593777 • Letter: F
Question
For the holildays, Marty gave a watch worth $21,800 to Emily and jewelry worth $47,500 to Natalie. (Leave no answer blank. Enter zero if applicable.) a. Has Marty made any taxable gifts this year and, if so, in what amounts? Marty's taxable gift to Emily Marty's taxable gift to Natalie b. Assume Marty is married to Wendy and they live in a community property state. What are the amounts, If any, of their taxable gifts? Marty's taxable gift to Emily Marty's taxable gift to Natalie Wendy's taxable gift to Emily Wendy's taxable gift to NatalieExplanation / Answer
a) Marty's taxable gift to emily = 7800
Marty's taxable gift to Natalie = 33500
b) Marty's taxable gift to emily = 0
Marty's taxable gift to Natalie = 9750
Wendy's taxable gift to emily = 0
Wendy's taxable gift to Natalie = 9750
After reducing each transfer for the 2017 annual exclusion of $14,000, Marty has made a taxable gift of $7800 toEmily and $33,500 to Natalie. However, if the gifts are from community property (or if Marty and his spouse electto split gifts), then both Marty and his spouse made a gift of $10900 to Emily and $23750 to Natalie. After applyingthe annual exclusion, neither Marty nor his spouse made a taxable gift to Emily but each of them made a taxablegift of $9750 to Natalie.