Ida sells some stock to Mae for $20,000 at a time when the stock is valued at $50,000. Later in the year, she gives Mae $16,000 in cash.
a) What is the amount of Ida's taxable gifts?
b) How would your answer to Part (a) change if Ida gave the cash to Jonathan instead of to Mae?
a) Ida made gifts of $46,000 [($50,000 - $20,000) + $16,000] to Mae. Ida receives an annual exclusion of $15,000. Ida's taxable gifts are $31,000.
b) Ida's taxable gift to Mae is $15,000 [($50,000 - $20,000) - $15,000] and to Jonathan is $1,000 ($16,000 - $15,000). Total taxable gifts for Ida are $16,000.
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The Civil Rights Act of 1964 does not protect against reverse discrimination.
Answer the following statement true (T) or false (F)