3. Which of the following transactions would constitute gifts for gift tax purposes (indicate Yes or No)? If yes, how/when is the amount of the gift determined? a. Lending a daughter $40,000 to go to dental school, then tearing up the IOU upon graduation. b. C. d. e. f. A transfer in trust, with income to A and/or B for life, remainder to C. (Grantor is trustee.) Placing a $500,000 home in joint tenancy with a new husband who did not contribute to the purchase price. Purchasing an engagement ring for $30,000 for his fiancee. Making a capital contribution to one's 40 percent owned partnership for working capital where the remaining 60 percent is owned by the transferor's children. Putting $100,000 in a joint savings account with the depositor's best friend.
3. Which of the following transactions would constitute gifts for gift tax purposes (indicate Yes or No)? If yes, how/when is the amount of the gift determined? a. Lending a daughter $40,000 to go to dental school, then tearing up the IOU upon graduation. b. C. d. e. f. A transfer in trust, with income to A and/or B for life, remainder to C. (Grantor is trustee.) Placing a $500,000 home in joint tenancy with a new husband who did not contribute to the purchase price. Purchasing an engagement ring for $30,000 for his fiancee. Making a capital contribution to one's 40 percent owned partnership for working capital where the remaining 60 percent is owned by the transferor's children. Putting $100,000 in a joint savings account with the depositor's best friend.
Chapter20: Income Taxation Of Trusts And Estates
Section: Chapter Questions
Problem 32P
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Transcribed Image Text:3. Which of the following transactions would constitute gifts for gift tax purposes (indicate
Yes or No)? If yes, how/when is the amount of the gift determined?
a. Lending a daughter $40,000 to go to dental school, then tearing up the IOU upon
graduation.
b.
A transfer in trust, with income to A and/or B for life, remainder to C. (Grantor
is trustee.)
C.
d.
e.
f.
Placing a $500,000 home in joint tenancy with a new husband who did not
contribute to the purchase price.
Purchasing an engagement ring for $30,000 for his fiancee.
Making a capital contribution to one's 40 percent owned partnership for working
capital where the remaining 60 percent is owned by the transferor's children.
Putting $100,000 in a joint savings account with the depositor's best friend.
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