Your client and her husband have jointly made the following

Your client and her husband have jointly made the following lifetime cash gifts: Total Gifts to SonTotal Gifts to Daughter $84,000 $100,000 Assming the client has made no prior taxable gifts, what amount of federal gift tax liability must be reported for the current year gifts by the client only, before application of the client\'s applicable credit amount? Use the Unified Federal Estate and Gift Tax Rate table. $14,040 $18,800 $28,600 $32,800

Solution

As Lifefime cash gift can be reduced from Lifetime cash limit reducing $15000 per donne . No Tax would be applicable.