70.2K

Verified Solution

Link Copied!

Ross and Rachel Geller, ages $70$ and $65,$ respectively, are retired physicians who live at $3319$

Taylor Street, New York City $10001.$ Their three adult children $($Benjamin Geller, Emma Geller,

and Olivia Geller$)$ are mature and responsible professionals. Ross$$s social is $327-68-6256$ and

Rachel$$s social is $435-82-9812.$ Ross and Rachel did not use the unified credit before. Nor were

they required to file Form $709.$

The Gellers have heard that some in Congress have proposed lowering the Federal unified

transfer tax exclusion amount to $$5,700,000.$ Although this change likely will not occur, the

Gellers believe that they should take advantage of the more generous exclusion amount available

under existing law.

Thus, the Gellers make gifts during the current year, as summarized below:

Donor

Asset Transfer Ross Rachel

Condo located in Bronx acquired in $2015,$ cost $$1,200,000,$ to

Benjamin, Emma, and Olivia as equal tenants in common. $$1,900,000$ $$1,900,000$

Office building, located in Queens built in $2017,$ cost $$1,800,000,$ to

Benjamin, Emma, and Olivia as equal tenants in common. $2,300,0002,300,000$

Vacation cabin in Hawaii inherited by Ross from his father in $2006,$

value then $$900,000,$ to Benjamin, Emma, and Olivia as equal joint

tenants with right of survivorship. $2,600,0000$

Separate property reimbursing Rachel$$s father $($Leonard Green$)$ for his

heart bypass operation. $082,000$

Paid for daughter's $($Olivia$\text{'}$s$)$ tuition to University of Washington $20,00020,000$

Separate property to purchase a new automobile as a graduation

present $($from medical school$)$ for Ross's favorite niece $($Carol Geller$).42,0000$

Required:

Prepare $2023$ gift tax returns $($Form $709)$ for both of the Gellers to compute the total taxable gifts

$($line $3)$ for Ross and Rachel.

An election to split gifts is made. The Gellers made no taxable gifts in prior years. Stop with line

$3$ of page $1,$ but complete pages $2$ and $3$ of the return.

Check Numbers:

$1.$ Schedule A Part $4$ Line $1$ is $$5,562,000$

$2.$ Schedule A Part $4$ Line $11$ is $$5,477,000$

Answer & Explanation Solved by verified expert

See Answer