C is corrent. The requirement is to determine the maximum exclusion available on Roger’s 2013 gift tax return for the $15,000 gift to Matt who needed the money to pay university tuition. The first $14,000 ($13,000 for 2012) of gifts made to a donee during the calendar year (except gifts of future interests) is excluded in determining the amount of the donor’s taxable gifts for 2013. Note that Roger does not qualify for the unlimited exclusion for tuition paid on behalf of a donee, because Roger did not pay the $15,000 as tuition to an educational organization on Matt’s behalf.
A is incorrect. The gift qualifies for the annual exclusion of $14,000.
B is incorrect. The annual exclusion amount is $14,000.
D is incorrect. Since the gift was made directly to Matt, it does not qualify for the unlimited exclusion for tuition.
|
