Steven’s gift tax liability for 2013 - Assignment Example


Extract of sample
Steven’s gift tax liability for 2013

The IRS considers gifts given by couples jointly, to be divided into half of the total value of the gift, such that each individual ends up giving half (Herisgad). From this point, each half is dealt with individually, subject to gift tax guidelines. If Steven, had given the car to Bobby jointly with his wife then it would have been total value $18,000 divided by two from each thus from Father $9,000 and Mother $9,000 of which both amounts do not reach the annual exclusion of $14,000 or $28,000 if put together. Same with Carla, the $20,000 gift if given jointly it will be subject to a $28,000 exclusion thus not tax liability.

Part 3: The basis of any property that you believe Steven gifted
Steven gifted his son Bobby with a car that was worth $18,000. This is considered a taxable gift following reasons. First, Steven did not give it to his spouse. Second, he did not contribute the car to a political organization or for charity use. Third, it was not used to fund tuition or medical expenses and lastly it surpassed the year exclusion limit thus making it liable for gift tax (IRS). ...
Download paper


Steven’s gift tax liability amounts to $10,000; however, this amount is offset by the lifetime gift exemption (Hoffman, Raabe and James 847). In this case, Steven is not subject to any gift taxes in 2013, but reduces his lifetime gift exemption by $10,000…
Author : georgettehoppe
Download 0

Related Essays

Gender roles and Marriage
While sex refers to the biological classification into male and female categories, gender indicates social classification of the masculine and feminine attributes. On the other hand identity depends on ones self realization about his or her sexual category. In the paper two stories have been taken up for study – ‘The Secret Life of Walter Mitty’ by James Thurber and ‘The Story of an Hour’ by Kate Chopin. In the former work, Mr. Mitty tries to build his masculine identity through his regular daydreams and in the second work, Mrs. Mallard tries to gain freedom from the repressive bond...
5 pages (1255 words) Thesis
A response on The Yellow Wallpaper
A response on The Yellow Wallpaper
4 pages (1004 words) Thesis
Efficient Market Theory & Behavioural Finance with regard to Financial Crisis 2007-2010
Behavioural Finance is a blend of psychology with finance, a contribution by Psychologists Daniel Kahneman and Amos Tversky, along with Richard Thaler, a University of Chicago professor and his colleague Nicholas Barberis. Their works have encouraged many scholars to pursue research in this unusual and different-from-classical-approach field. In this paper, there is the analyses of the two theories, the causes of the Financial Crisis and if EMH has direct implications in it. There is an explanation how behavioural finance can explain the anomalies which have persisted too long to lead to this...
6 pages (1506 words) Essay
Multinational Corporations
The fluctuations in the forex may result in great losses. In order to get protection from such losses, there are helpful tools like futures contracts which reduce the credit risk greatly. Forward contracts are also very helpful if a party is looking for hedging. A party can also make currency option contracts to protect itself from fluctuating rates. A country has the option to adopt an exchange rate system of its choice. It looks to adopt the system that works best in achieving current account equilibrium. Exchange rates also influence inflation and interest rates of a country which is why...
5 pages (1255 words) Essay
Finance and Accounting: Nike Inc.
Financial information is an important component for any organization in the contemporary business environment. Accounting and budgeting information are important aspects of finance and accounting that rely on accuracy, reliability and ease of access for the strategic advantage of any firm.
12 pages (3012 words) Essay
Performance Management
Therefore, the system of performance management generally involves evaluating and developing the skills, behaviors, and the performance of individual employees, for ensuring that the organization competes favorably in the market through its high performance.
6 pages (1506 words) Essay
The Balanced Scorecard
The Balanced Scorecard
4 pages (1004 words) Essay
Got a tricky question? Receive an answer from students like you! Try us!