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Ignoring the annual per-donee exclusion, which of the following transfers is a gift for federal gift tax purposes?
Suggested Answer: C
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37 comments · newest first
JO
Johna
10 months ago
Surprised that tuition payments can be gifts!
ED
Edison
11 months ago
Totally agree with C being a gift!
NA
Natalya
11 months ago
Wait, are we sure A isn't a gift?
BU
Bulah
11 months ago
I think D counts too, right?
DE
Denny
11 months ago
C is definitely a gift for tax purposes.
GE
Germaine
12 months ago
I recall that canceling a debt can be considered a gift, so the creditor's action might qualify under gift tax rules.
DA
Davida
12 months ago
The tuition payment seems like it could be a gift, but I wonder if there are exceptions for educational expenses.
NI
Nickolas
12 months ago
I think the promise to buy the condo might not be a gift yet since it’s just a promise, not an actual transfer.
MA
Margurite
1 year ago
I remember discussing how gifts are defined, but I'm not sure if the services performed for a friend count as a gift.
MA
Marylin
1 year ago
The services performed for the close friend seem like they could be considered a gift, but I'm not sure. And the creditor canceling the note - is that considered a gift or just a debt forgiveness? Hmm, gotta think this through.
CH
Chantay
1 year ago
I'm a little confused on this one. I know the annual exclusion doesn't apply, but I'm not sure how to categorize some of these scenarios. Might need to review my notes before answering.
MI
Mirta
1 year ago
Hmm, I think the key here is whether the transfer is "gratuitous" or not. I'll need to think through each option and consider if there's any consideration or obligation involved.
MO
Moira
1 year ago
This seems like a tricky question. I'll need to carefully review the gift tax rules to determine which of these scenarios would be considered a gift.
FR
Fredric
1 year ago
Okay, I've got this! The grandmother paying her grandson's tuition is definitely a gift, since it's a gratuitous transfer of value. I'm pretty confident that's the right answer.
KE
Kenneth
1 year ago
Okay, let me think this through. I want to make sure I understand the implications of disabling the setup wizard. I'll need to carefully read through the options to determine the correct answer.
LA
Lawana
1 year ago
Grandma's got deep pockets! I wonder if she's taking any more grandkids for Ivy League scholarships.
IR
Irene
1 year ago
Hey, if I start giving out free condos and tuition, can I write that off as a gift? Asking for a rich friend.
FE
Felicitas
1 year ago
Wait, so if I cancel my friend's debt, I have to pay taxes on that? That's just adding insult to injury!
GE
Gertude
1 year ago
C) A grandmother pays her grandson's $30,000 tuition at an Ivy League university.
EU
Eura
1 year ago
B) A father promises to buy his daughter a condominium when she finishes college.
HY
Hyman
1 year ago
A) An individual gratuitously performs valuable services for the benefit of a close friend.
JO
Joni
1 year ago
D is the correct answer. Canceling a promissory note is a transfer of property, so it's a gift for tax purposes.
FR
Francine
1 year ago
D) A creditor cancels the promissory note of a recently unemployed friend as a charitable gesture.
TE
Terina
1 year ago
C) A grandmother pays her grandson's $30,000 tuition at an Ivy League university.
AR
Arthur
1 year ago
B) A father promises to buy his daughter a condominium when she finishes college.
PE
Pete
1 year ago
A) An individual gratuitously performs valuable services for the benefit of a close friend.
AI
Aimee
1 year ago
Hmm, I'm not sure about that. Wouldn't the father's promise to buy the daughter a condominium also be considered a gift?
AU
Audry
1 year ago
B) I think the father's promise might not be considered a gift for federal gift tax purposes.
MA
Ma
1 year ago
C) A) An individual gratuitously performs valuable services for the benefit of a close friend.
NO
Nobuko
1 year ago
B) A father promises to buy his daughter a condominium when she finishes college.
TE
Tess
1 year ago
A) An individual gratuitously performs valuable services for the benefit of a close friend.
DI
Dino
1 year ago
B) A father promises to buy his daughter a condominium when she finishes college.
LA
Larae
1 year ago
A) An individual gratuitously performs valuable services for the benefit of a close friend.
LA
Larae
2 years ago
I think the answer is C. A grandmother paying her grandson's tuition is a clear-cut gift for federal gift tax purposes.
RI
Rikki
2 years ago
I'm not sure about option A, performing services might not be considered a gift for federal gift tax purposes.
GE
Georgene
2 years ago
I agree with Casey, option C seems like a gift because it involves transferring money for the benefit of someone else.
CA
Casey
2 years ago
I think option C is a gift because the grandmother is paying for her grandson's tuition.