This year Drake and his son purchased real estate for an investment. The price of the property was $1,200,000, and the title named Drake and his son as joint tenants with the right of survivorship. Drake provided $900,000 of the purchase price and his son provided the remaining $300,000. What is the amount of the taxable gift

Question

Savion Santana

Business

1 February, 14:03

This year Drake and his son purchased real estate for an investment. The price of the property was $1,200,000, and the title named Drake and his son as joint tenants with the right of survivorship. Drake provided $900,000 of the purchase price and his son provided the remaining $300,000. What is the amount of the taxable gift

+3

Answers (1)

Know the Answer?

Chica · Answer 1

The amount of taxable gift is $285,000.

($900,000 - ($1,200,000) : 2) - $15,000 in 2020

$900,000 - $600,000 - $15,000

= $285,000.

A gift tax can be defined as a tax that is imposed on the giver of a gift.

For the year 2020 in the United States, the annual gift exclusion is $15,000 for one individual.