Question

Using Excell prepare your answer. Figure Ginger gift tax. Ginger Graham, age 46 and wife of Greg Graham, engaged in the transactions described below. Determine Ginger's gift tax liability for 2015 if she and Greg elect gift splitting and Greg gave their son Stevie stock valued at $80,000 during 2015. Ginger's grandmother Mamie died November 12, 2014, and Mamie's will bequeathed $250,000 to Ginger. On March 4, 2015, Ginger irrevocably disclaimed the $250,000 in writing, and, as a result, the property passed instead to Ginger's sister Gertie. In 2015, Ginger gave $100,000 cash to her alma mater, State University. In 1996, Ginger gave ownership of a life insurance policy on her own life to her daughter, Denise, and in 2015 Ginger paid the $22,000 annual premium on the policy. In 2014, Ginger deposited $45,000 into a bank account in the name of herself and son Stevie, joint tenants with rights of survivorship. Stevie deposited nothing. Neither party made a withdrawal until 2015, when Stevie withdrew $30,000. In 2015, Ginger created a trust with County Bank as trustee and transferred $300,000 of stock to the irrevocable trust. She named her husband Greg (age 47) to receive all the trust income semi-annually for life and

Answer 1

Ginger gift Tax
Tranfer to rights to Gretie	$250000
Tranfer to state university	$100000
Tranfer to policy premium to Denise	$22000
Tranfer from joint account to stieve	$30000
Tranfer to husband and daughter (trust)	$300000
Tranfer to American red cross	$70000
Ginger Made actual gift	$772000
Less: 1/2 of the Ginger's gift made to third	($236000)
parties that are deemed made by husband
(.5*($250000+$100000+$22000+$30000+$70000)
Add: 1/2 of husband's gift to third parties	$190000
Less: Charitable contribution deduction	($142000)
(100000+70000-14000*2)
Taxable gift for the current period	$214000
Tax on cumulative gift of $389000*40%	$155600
Less: tax on previous taxable gift of $175000*55%	($96250)
Gift tax payable	$59350