Study Unit 13: Gift Tax – Skill Arcadia

1. Nancy’s books and records reflect the following for the year. Which transaction would require filing Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return?

Gratuitously transferred a vehicle with a fair market value of $25,000 to her fiance a month before they were married.

Donated $19,000 to a qualified political organization.

Paid $23,000 to St. Francis Hospital for her aunt’s unreimbursed medical expenses.

Paid $20,000 to State University for her brother’s tuition.

2. Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, is required to be filed for

A transfer of a present interest that is not more than the annual exclusion ($19,000).

A qualified transfer for educational or medical expenses.

A transfer of a future interest that is not more than the annual exclusion ($19,000).

A transfer to your spouse that qualifies for the unlimited marital deduction.

3. In which of the following circumstances would a gift tax return be due?

Check for $25,000 to son.

Transfer of stock valued at $30,000 to spouse.

Payment of a friend’s $20,000 tuition expense.

None of the answers are correct.

4. Which of the following situations would require the filing of Form 709?

You and your spouse agree to split your gifts, which total $33,000.

You gave more than $19,000 during the year to any one donee.

Any of the gifts you made were of a future interest.

All of the answers are correct.

5. Tom, who is married, gave a vase worth $40,000 to his sister, Julie. Tom’s basis in the vase is $10,000. What amount will Tom report as the value of the gift on Form 709?

$10,000

$20,000

$30,000

$40,000

6. John made the following transfers during tax year 2025:

To his neighbor in the amount of $23,000
To his nephew in the amount of $20,000
To his uncle in the amount of $21,000

All of the transfers are gifts that qualify for the annual exclusion. John files one Form 709 for tax year end December 31, 2025. What is the total annual exclusion amount for gifts listed on John’s 2025 Form 709 filing?

$64,000

$57,000

$19,000

$18,000

7. The following transfers were made by Ed during 2025. What is the gross amount of gifts to be included on Ed’s 2025 Form 709 filing?

$21,000 to the United Way
$19,000 to a political organization
$25,000 paid directly to his nephew’s college for tuition
$20,000 paid directly to his niece for her college tuition

$46,000

$20,000

$41,000

$66,000

8. Which of the following entities are required to file Form 709, United States Gift Tax Return?

An individual.

An estate or trust.

A corporation.

An individual, an estate or trust, and a corporation.

9. On February 4, Year 1, Mr. Smith made a gift in an amount sufficient to require the filing of a federal gift tax return. On October 5, Year 1, Mr. Smith died. No estate tax return will need to be filed for Mr. Smith. Assuming extensions have not been obtained, the gift tax return, Form 709, must be filed by (assuming none of the dates are Saturdays, Sundays, or holidays)

April 15, Year 1.

March 15, Year 2.

April 15, Year 2.

July 5, Year 2.

10. For transfers by gift during the current year, one must file a gift tax return for which of the following?

A transfer of $25,000 to a son for which one’s spouse has agreed to gift splitting.

A qualified transfer for educational or medical expenses.

A transfer of a present interest in property that is not more than the annual exclusion.

A transfer to one’s spouse that qualified for the unlimited marital deduction.

11. The annual gift tax exclusion amount is allowed on which of the following gifts?

$30,000 cash to Friend A.

$30,000 car to Friend B.

$30,000 remainder interest to Friend C.

Both $30,000 cash to Friend A and a $30,000 car to Friend B.

12. Mary Smith made only the following transfers of interest in personal property during the tax year:

$40,000 cash to the Democratic Party, a political organization [as defined in Sec. 527(e)(1)]
$25,000 cash to Good Care Health, Inc., for medical care [as defined in Sec. 213(d)] of her ailing resident father
100 shares of common stock of ABC, Inc., with a basis to Mary of $5,000 and a fair market value (FMV) of $10,000 to Save the Walnut Foundation, a Sec. 501(c)(3) organization

What is the total amount of gifts that must be reported on Mary’s gift tax return?

$75,000

$70,000

$10,000

Mary does not need to file Form 709 for the tax year.

13. Andrew gave several taxable gifts to friends and relatives during 2025 requiring a gift tax return. He also gave $50,000 to his favorite charity, a qualified 50% organization. When he files his 2025 Form 709, what amount of the charitable donation will Andrew enter as a taxable gift (Schedule A, Part 4, line 11)?

$25,000

$31,000

$50,000

14. For calendar year 2025, if a gift tax return is required to be filed and the donor is not deceased, what is the due date of the return excluding extensions?

Within 75 days of making the gift.

On or before December 31, 2025.

No earlier than January 1, 2026, and no later than April 15, 2026.

Within 180 days of making the gift.

15. On June 30, 2025, John Smith made a gift of $2,000 to his daughter. John will need to file a gift tax return (Form 709) on or after January 1, 2026, but no later than

March 15, 2026.

April 15, 2026.

March 31, 2026.

John will not have to file Form 709 for year ending December 31, 2025.

16. On June 15, 2025, Marlo made a transfer by gift in an amount sufficient to require the filing of a gift tax return. If Marlo did not request an extension of time for filing the 2025 gift tax return, the due date for filing was

December 31, 2025.

March 15, 2026.

April 15, 2026.

June 15, 2026.

17. Cassy, a single individual, has not been required to file a gift tax return in any prior year. In 2025, Cassy paid $20,500 tuition directly to State University for her sister, Andrea. She gave her brother $10,000 to pay medical bills for his daughter. She also donated $30,000 to the United Way. Must Cassy file a gift tax return?

No.

Yes, because the gift to her sister exceeded $19,000.

Yes, because the United Way donation exceeded $19,000.

Yes, because the total gifts she gave during the year exceeded $19,000.

18. John made several transfers during 2025. In January, he paid $7,000 of tuition directly to State University for his friend, Sam. He gave his niece, Sally, $5,000 for her school tuition. In addition, in May, he also gave the following graduation gifts:

Cash to his friend, Sam	$7,500
Cash to his niece, Sally	5,000

He gave no other gifts during the year. From the information above, must John file a gift tax return, and why?

No, total gifts to any one individual during the year do not exceed $19,000.

No, each transfer was under $19,000.

Yes, total gifts given during the year exceed $19,000.

Yes, total gifts to Sam exceed $19,000.

19. In general, on Form 709, you can claim a marital deduction for gifts to your spouse. Generally, you cannot take the marital deduction if the gift to your spouse is a terminable interest. You may elect to deduct a gift of a terminable interest (QTIP) if it meets three requirements. Which of the following is NOT a necessary requirement?

No part of the entire interest is subject to another person’s power of appointment.

Your spouse is entitled for life to all of the income from the entire interest.

The income is paid yearly or more often.

Your spouse has the unlimited power, while he or she is alive or by will, to appoint the entire interest in all circumstances.

20. Generally, in which of the following scenarios must a gift tax return be filed?

You gave gifts to an individual (other than your spouse) totaling more than $19,000.

You gave a gift of a future interest that was less than $19,000.

You wish to split gifts with your spouse.

All of the answers are correct.

21. During 2025, Sadie made the following transfers:

She deeded her personal residence to her daughter and herself to be held in joint tenancy. The fair market value of the residence at the time of transfer was $150,000.
She placed a $30,000 bank account in joint tenancy with her daughter. Neither she nor her daughter made any withdrawals in 2025.
She placed a $20,000 bank account in joint tenancy with her daughter. During 2025, Sadie withdrew $2,000, and her daughter withdrew $5,000 from the account.
She bought $10,000 in U.S. savings bonds registered as payable to herself or her daughter. Neither she nor her daughter cashed any of the bonds during 2025.

What is the gross amount of gifts given by Sadie in 2025?

$105,000

$90,000

$80,000

$5,000

22. Ralph gave his aunt an antique clock during tax year 2025. He had purchased the clock for $21,000 in 2021. The fair market value at the date of the transfer was $27,000. What amount should be recorded on Form 709 as the value of this gift?

$21,000

$8,000

$27,000

$2,000

23. All of the following are deductions allowed in determining the gift tax EXCEPT

A gift to the state of Pennsylvania for exclusively public purposes.

The value of any gift made to one’s spouse who is not a United States citizen.

A gift made to one’s spouse, a United States citizen, in excess of $190,000.

A gift of a copyrightable work of art to a qualified organization if the copyright is not transferred to the charity.

24. Which of the following statements regarding the annual exclusion for gift taxes is true?

The gift of a present interest to more than one donee as joint tenants qualifies for only one annual exclusion.

A gift of a future interest cannot be excluded under the annual exclusion.

The annual exclusion amount for 2025 is $20,000.

None of the answers are correct.

25. During the calendar year, John made the following payments:

$20,000 to a qualified political party
$24,000 to a local hospital for his mother’s recent operation
$29,000 to the state university for his nephew’s tuition expense
$20,000 to his favorite qualified charity

What is the gross amount that John must report on his gift tax return (Form 709)?

John does not have to file a gift tax return for the calendar year.

$93,000

$73,000

$20,000

26. Donald is a tax return preparer. His client, Jody Black, told him that she had made several gifts during 2025. She asked whether she should file a gift tax return and, if so, how much tax she would owe. Jody has never given a taxable gift before. Donald reviewed Jody’s gift transactions as follows:

Paid her parents’ medical bills, $19,000 for her father and $14,000 for her mother
Bought a sports car for her son at a cost of $43,000
Gave $19,000 cash to her church
Prepared her will, leaving her vacation cabin, valued at $75,000, to her sister
Sent a wedding gift of $1,000 to her niece

What is Donald’s best answer to Jody’s questions?

No return is due because gifts to family are excluded.

Jody must file a gift tax return and will owe tax on $24,000.

Jody must file a gift tax return, but she will not owe tax because of the unified credit.

None of the answers are correct.

27. Which of the following statements is true in respect to determining the amount of net gift tax?

There is a one-time marital deduction of $600,000.

The annual exclusion is limited to a total of $19,000 per year per donor.

The applicable credit amount may be used to reduce up to $5,541,800 of gift tax liability per year.

The applicable credit amount claimed may not exceed the tax for the calendar year.

28. During 2025, Barbara gave her daughter the following gifts:

	Fair Market Value	Basis
Cash	$10,000	$10,000
100 shares of ABC Corp.	25,000	5,000
Vacant land	50,000	60,000

What is the gross amount of gifts given by Barbara in 2025?

$75,000

$85,000

$95,000

None of the answers are correct.

29. Jim has elected to treat transfers (on behalf of his son) made by him during tax year 2025 to a qualified state tuition program as made ratably over 5 years. His total contribution to this plan during 2025 is $95,000. He makes no other transfers during tax year 2025. What amount will be treated as a taxable gift in tax year 2025?

$95,000

$76,000

$19,000

30. Lanny won $10 million at a casino in 2023 and invested in mutual funds. When he married Judy in 2024, they signed prenuptial agreements. Then, in 2025, Lanny decided to give away some of his money. He made the following gifts:

$100,000 cash to Judy
$50,000 to each of his three adult children
$50,000 to the Republican Party

What are the total taxable gifts that Lanny made in 2025? (Assume no gift splitting was elected.)

$200,000

$300,000

$93,000

$150,000

31. During the current year, Mr. and Mrs. X made joint gifts to their son of the following items:

A painting with an adjusted basis of $15,000 and a fair market value of $45,000.
Stock with an adjusted basis of $27,000 and a fair market value of $30,000.
An auto with an adjusted basis of $15,000 and a fair market value of $17,000.
An interest-free loan of $8,000 for a boat (for the son’s personal use) on January 1 of the current year, which was repaid by their son on December 31 of the current year. Assume the applicable federal rate was 11% per annum.

What is the gross amount of gifts includible in Mr. and Mrs. X’s gift tax return?

$92,880

$92,000

$57,880

$57,000

32. Lace gave the following gifts during the year:

$10,000 in cash to her sister
$21,000 in stocks to her brother
$21,000 in cash to United Way
A car to her cousin worth $25,000

Based on this information, what is the amount of taxable gifts given?

$4,000

$8,000

$19,000

33. John, who is not married, made the following transfers during 2025:

$10,000 to his son Bradley
$20,000 to his daughter Alexandria
$7,000 political contribution
$5,000 charitable contribution
Car to his son Bradley ($26,000 basis; $20,000 FMV)
Autographed baseball to his grandson Tommy ($75 basis; $500 FMV)

What is the gross amount of gifts that John will report on his 2025 Form 709 (before deductions)?

$62,000

$45,000

$55,000

$62,500

34. During 2025, Dave gave his daughter Joan the following items: stock with a fair market value of $42,000 and an adjusted basis of $45,000, a boat with a fair market value of $5,000 and an adjusted basis of $3,000, and a print with a fair market value of $12,000 and an adjusted basis of $5,000. What is the gross amount of gifts includible in Dave’s gift tax return for 2025?

$50,000

$53,000

$59,000

$62,000

35. Jack, a single individual, made the following gifts in 2025:

Payment directly to sister’s qualifying college for tuition	$20,000
Payment directly to sister’s qualifying college for room and board	25,000
Cash to nephew	10,000
Cash to brother	30,000

What is the gross amount of gifts that Jack must include on his 2025 Form 709, United States Gift Tax Return?

$85,000

$40,000

$65,000

$55,000

36. Listed below are gifts Joan made during 2025:

$25,000 gift to a nonprofit home for the underprivileged
$19,000 gift to her daughter
$19,000 in contributions to a historical museum
$40,000 gift to her spouse

What is the amount of taxable gifts to be reported on Form 709 for 2025?

$40,000

$59,000

$84,000

37. Alberta, who had not given taxable gifts in any prior year, gave her five children the following gifts in 2025:

A car to Richard worth $23,000
$21,000 cash to Elizabeth
$19,500 in stock to John
$18,500 in stock to Jane
$14,000 cash to Robert

From the information above, determine the amount, if any, of taxable gifts given by Alberta.

$96,000

$6,500

$77,000

38. Chris, who is single and a U.S. citizen, made the following gifts in 2025:

$100,000 cash to nephew
$100,000 cash to sister
$200,000 property to brother
$100,000 cash to local university building fund

Chris had not made any gifts in prior years. What is the amount of taxable gifts?

$343,000

$400,000

$424,000

$500,000

39. During the calendar year, Mary gave several gifts to relatives. Which of the following gifts must be reported in an annual gift tax return?

$25,000 to her mother to help pay for medical expenses
A $20,000 federal tax-exempt municipal bond to her sister
100 shares of stock to her daughter (Mary’s basis in the stock was $10,000 and the fair market value at the date of gift was $20,000)
$20,000 to a qualified university for her son’s dormitory fees

2 and 4.

2, 3, and 4.

3 only.

1, 2, 3, and 4.

40. In 2025, Linda gave her daughter a gift of land that had a fair market value of $15,000,000. She made no gifts from 1992 through 2025. In 1991, she used $1,506,800 of her applicable credit to offset gift tax otherwise due. What amount of applicable credit can Linda use to offset gift tax due on the 2025 gift?

$5,541,800

$4,035,000

$19,000

41. Margaret’s 2025 Form 709, page 1, has the following entries:

$2,213,000 tax of current-year gifts
$5,541,800 maximum unified credit
$3,530,800 credit used in prior years

Based on this information, what is the balance due on Margaret’s Form 709 Gift Tax Return this year?

$2,213,000

$202,000

$3,530,800

42. During the year, Rebecca made the following potentially taxable gifts:

$1,000 to the Democratic Party
$5,000 to a local university for her nephew’s tuition
$9,000 to a local university for her nephew’s room and board
$20,000 to a local hospital for her sister’s surgery
Sold land with a fair market value of $22,000 to her brother for $100

What is the total of Rebecca’s taxable gifts for the year?

$42,000

$30,900

$3,900

$2,900

43. Listed below are gifts Jan made during the current year.

Gift to a charitable organization	$25,000
Gift to her daughter	26,000
Contributions to a political organization	25,000
Gift to friend	14,000

What is the amount of taxable gifts on Form 709 for the year?

$2,000

$7,000

$26,000

$32,000

44. Which of the following represents taxable gifts?

Transfer of wealth to a dependent family member that represents support
Payment of a son’s tuition directly to the law school
Payment of $20,000 of medical bills directly to the hospital for a friend

None of the choices is a taxable gift.

Only I is a taxable gift.

Only II is a taxable gift.

Both II and III are taxable gifts.

45. Which of the following statements relating to qualified transfers for gift tax purposes is NOT true?

The exclusion for a qualified transfer is in addition to the annual exclusion.

A qualified transfer is allowed without regard to the relationship between the donor and donee.

Only that part of a payment to a qualified educational institution that applies to direct tuition costs is a qualified transfer.

A payment made directly to an individual to reimburse him or her for his or her medical expenses is a qualified transfer.

46. During the current year, Mr. C, a U.S. citizen, made the following gifts:

$21,000 cash to his son; $50,000 to his wife, also a U.S. citizen
Equipment to his brother (fair market value $25,000, adjusted basis $12,000)
$100,000 in cash to City W for construction of a new city park

Without considering gift splitting, what is the total of Mr. C’s exclusions and deductions for his current-year gift tax return?

$169,000

$181,000

$188,000

$189,000

47. In the current year, Blum, who is single, gave an outright gift of $50,000 to a friend, Gould, who needed the money to pay medical expenses. In filing the current-year gift tax return, Blum was entitled to a maximum exclusion of

$50,000

$18,000

$19,000

48. Mary made the following gifts in the current year:

Gift	Donee	Value
Cash	Son	$20,000
6-month certificate
of deposit	Daughter	7,000
Antique furniture	Sister	24,000
Stocks in trust
Life estate	Brother	79,000
Remainder	Daughter	24,000

Mary’s taxable gifts for the current year total

$154,000

$116,000

$90,000

$78,000

49. During the current year, Nancy, who is single, made the following gifts:

Paid $20,000 in medical bills for her friend. The payments were paid directly to her friend’s doctor.
Gave $22,000 to her mother to help her with rent and groceries.
Gave $27,000 to her nephew Tom to get him started in business.
Also made a $50,000 interest-free demand loan to her nephew James last year. The loan is still outstanding at the end of the current year. The applicable federal interest rate during the current year remained constant at 10%.

What is the amount of Nancy’s taxable gifts in the current year?

$12,000

$11,000

$9,000

$8,000

50. When Jim and Nina became engaged in April of this year, Jim gave Nina a ring that had a fair market value of $50,000. After their wedding in July of the same year, Jim gave Nina $75,000 in cash so that Nina could have her own bank account. Both Jim and Nina are U.S. citizens. What was the amount of Jim’s current-year gift tax marital deduction?

$75,000

$106,000

$125,000

51. Jimmy Johnson made several gifts during the year. He gave his niece $15,000 as a graduation gift; he paid $27,000 college tuition for his nephew; and gave his daughter $35,000 as a wedding gift. Jimmy is not married. What are the total taxable gifts to be reported?

$77,000

$16,000

$62,000

$24,000

52. Joe is contemplating retirement and decided to simplify his financial situation by disposing of some assets. He had the following transactions during the year:

Sold his business to his son for $100,000. The fair market value of the business at the time of the sale was $175,000.
Paid college tuition of $24,000 directly to the college for his brother’s child.
Gave stock valued at $21,000 to his alma mater.
Paid $30,000 of the medical expenses directly to the doctor of his sister who had no insurance.

What is the total amount of gifts (before adjusting for the annual exclusion) that should be reported on his gift tax return for the year?

$96,000

$99,000

$120,000

$150,000

53. A taxpayer elected to treat transfers (on behalf of a child) made by the taxpayer during tax year 2025 to a qualified state tuition program (QTP), as made ratably over 5 years. The total contribution to this plan during 2025 is $115,000. No other transfers are made during tax year 2025. What amount will be treated as a taxable gift in tax year 2025?

$115,000

$20,000

$19,000

$4,000

54. A taxpayer made the following transactions during the year:

Loaned son $9,000 with no interest for purchase of a boat
Gave neighbor $2,000 for lawn beautification
Paid $20,000 to hospital for father’s medical expenses
Made a charitable donation of a $20,000 piano
Contributed $60,000 to daughter’s QTP (elected maximum prorating)

What is the taxpayer’s taxable gift for the year?

$42,000

$43,000

$111,000

55. Susan gave her niece a classic piano during tax year 2025. She had purchased the piano for $22,000 in 2021. The fair market value at the date of the transfer was $20,000. What amount should be recorded on Form 709 as the value of this gift?

$1,000

$3,000

$20,000

$22,000

56. Mr. C made the following gifts during the current year:

$2,000 each month to a university to pay tuition costs for his niece
An undeveloped tract of land to his sister that had an adjusted basis to Mr. C of $5,000 and a fair market value of $34,000
Various shares of stock to his wife that had an adjusted basis to Mr. C of $20,000 and a fair market value of $40,000

Mr. C did not consent to gift splitting. What is the total amount of taxable gifts for the current year?

$15,000

$34,000

$98,000

57. Mr. Fred Wall bought a house that cost $50,000 for an unrelated friend, Gloria Wilson, in 2025. Mrs. Wall made no gifts in 2025. In filing their gift tax returns for 2025, Mr. and Mrs. Wall should file Form 709, United States Gift Tax Return, as follows:

Mr. Wall should file a gift tax return reporting the $50,000 gift and taking a $19,000 annual exclusion.

File one joint gift tax return reporting the $50,000 gift and taking a $19,000 annual exclusion for each spouse, or a $38,000 exclusion.

File two gift tax returns, one for Mr. Wall and one for Mrs. Wall, with each spouse signing the consent section of the other’s gift tax return signifying that the spouse agrees to treat all gifts as made one-half by each spouse. A $19,000 annual exclusion may be taken on each return.

Either Mr. Wall should file a gift tax return reporting the $50,000 gift and taking a $19,000 annual exclusion or Mr. and Mrs. Wall should file two gift tax returns, one for Mr. Wall and one for Mrs. Wall, with each spouse signing the consent section of the other’s gift tax return signifying that the spouse agrees to treat all gifts as made one-half by each spouse. A $19,000 annual exclusion may be taken on each return.

58. Valerie and Dino, who were married in 2018, made a gift to their son Michael on January 2, 2025. In July 2025, Valerie and Dino were legally divorced. Valerie married Scott on December 20, 2025. Which answer below best describes this situation?

The gift splitting benefits are available to Valerie and Dino if Valerie consents.

The gift splitting benefits are not available to Valerie and Dino because they were divorced in 2025.

The gift splitting benefits are not available to Valerie and Dino because Valerie remarried in 2025.

The gift splitting benefits are available to Valerie and Dino because they were married at the time the gift was made.

59. George and Helen are husband and wife. During 2025, George gave $46,000 to his brother and Helen gave $38,000 to her niece. George and Helen both agree to split the gifts they made during the year. What is the taxable amount of gifts, after the annual exclusion, each must report on Form 709?

George and Helen each have taxable gifts of $23,000.

George has a taxable gift of $27,000 and Helen has a taxable gift of $19,000.

George and Helen each have taxable gifts of $4,000.

George has a taxable gift of $8,000 and Helen has a taxable gift of zero.

60. Which of the following statements concerning gift splitting is false?

To qualify for gift splitting, a couple must be married at the time the gift is made to a third party.

Both spouses must consent to the use of gift splitting.

For gift tax purposes, a husband and wife must file a joint income tax return to qualify for the gift splitting benefits.

The annual gift tax exclusion allows spouses who consent to split their gifts to transfer up to $38,000 to any one person during any calendar year without gift tax liability, if the gift qualifies as a present interest.

61. During 2025, Wellington made the following gifts:

$48,000 cash to son Willis
Land worth $100,000 to wife Paula
A $20,000 painting to niece Marlene

Wellington and Paula elect gift splitting. Paula’s only gift in 2025 was a $58,000 cash gift to her mother. What is the amount of the taxable gifts to be reported by Wellington in 2025?

$15,000

$63,000

$163,000

$226,000

62. Which of the following statements regarding gift splitting is true?

The couple must have been married at the time the gift was given, but either or both spouses may be remarried during the year.

The couple must have been married at the time the gift was given, and neither spouse may remarry during the year.

The couple need not be married at the time of the gift, but must be married by the end of the year.

The couple must be married at all times during the year.

63. Which of the following statements regarding gift splitting by married couples is true?

If only one spouse has made gifts during the year and the spouse consents to split the gift, the other spouse is always required to file a gift tax return.

If both spouses consent to split a gift of a future interest, both spouses must file gift tax returns only if the value of the gift is greater than $38,000.

A consent to split gifts may be made on an amended gift tax return after the due date of the original return.

If the spouses are divorced during the year, they still may split a gift made before the divorce as long as neither marries anyone else during that year.

64. John and Mary were married on July 1, 2025. During 2025, John gave the following gifts:

2/21/2025 - $10,000 worth of ABC Corp. stock to John’s son David
4/20/2025 - $30,000 worth of vacant land to John’s daughter Susan
10/31/2025 - $100,000 cash to Mary
11/18/2025 - $20,000 worth of XYZ Corp. stock to John’s son David

Mary did not make any gifts during 2025. John and Mary agreed to split gifts for 2025. What is the amount of gifts that can be split between John and Mary in 2025?

$160,000

$60,000

$20,000

None of the answers are correct.

65. In March of the current year, H transferred $208,000 to Daughter and $208,000 to Son. In July of the same year, H’s wife transferred $5,000 to Son. No other gifts were made. H and his wife elected to split the gifts on their gift tax returns. What is the amount of current-year taxable gifts made by H and H’s wife?

$172,500

H’s Wife

$172,500

$191,500

H’s Wife

$191,500

$340,823

H’s Wife

$4,177

$345,000

H’s Wife

66. During the current year, Mr. Jones made gifts to his son of the following items:

A minivan with an adjusted basis of $19,000 and fair market value of $21,000.
Bonds with an adjusted basis of $7,000 and fair market value of $23,000.
Antique furniture with an adjusted basis of $19,000 and a fair market value of $38,000.
An interest-free $10,000 loan on January 1 to buy a boat for his personal pleasure. His son repaid the loan in full on December 31. The applicable federal interest rate was 10%.

Mr. and Mrs. Jones elect gift splitting. What is the total amount of their taxable gifts to their son in the current year?

$7,000

$45,000

$44,000

$82,000

67. Jack and Jill are married and agree to split the gifts that they made during the current year. Jack gives his nephew, James, $24,000, and Jill gives her niece, Janice, $20,000. Which statement is true regarding Jack and Jill’s gifts?

Jack and Jill can combine their gifts of $44,000 on one gift tax return and take a $19,000 annual exclusion for each recipient.

Jack and Jill must file separate gift tax returns, and each may take a $19,000 annual exclusion for his or her gift.

Jack and Jill must file separate gift tax returns and report one-half of each gift on each return before applying the $19,000 annual exclusions.

None of the answers are correct.

68. Which of the following statements concerning gift splitting is true?

A couple married by the end of the year may split gifts made during any part of that year.

Only the spouse with earned income must consent to gift splitting.

Qualified spouses may transfer up to $38,000 to any one person without gift tax liability.

A married couple must file a joint income tax return to qualify for gift splitting.

69. Which of the following scenarios is correct for splitting gifts during the same year?

Generally, a couple may elect to split a gift for a relative and elect to not split a second gift to a friend.

Generally, a couple may elect to split a gift for a friend and elect to not split a second gift to a relative.

The spouse who did not donate the gift is not liable for tax due on any gift amount in excess of the exclusions.

Both spouses are jointly and severally liable for tax due on any gift amount in excess of the exclusions.

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