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22 August, 23:18

Melissa is a very generous single woman. Before this year, she had given $2,000,000 in taxable gifts over the years. In the current year, Melissa gave her daughter Riley $100,000 and promptly filed her gift tax return. Melissa did not make any other gifts this year. How much gift tax must Melissa pay the IRS because of this transaction?

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  1. 22 August, 23:35
    0
    zero

    Explanation:

    Melissa will have to add to their taxable gifty amount as it exceed the 15,000 tax exemption per year:

    100,000 - 15,000 = 85,000

    The goverment states an exclusion per lifetime at 11,400,000

    Melissa currently is at 2,000,000 therefore it can kepe with their gift for several years without paying gift taxes as, 2,000,000 + 85,000 = 2,085,000 is still below the lifetime exclusion
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Home » Business » Melissa is a very generous single woman. Before this year, she had given $2,000,000 in taxable gifts over the years. In the current year, Melissa gave her daughter Riley $100,000 and promptly filed her gift tax return.
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