Question

On January 2, 2023, Mary bought shares of ABC stock for $250,000. On November 4, 2024, she gave her brother, Jim, the shares, which were then worth $550,000. Mary had never before given a gift that exceeded the annual exclusion amount. On the last trading day of the year 2024, the stock was worth $750,000. (a) What value is reported on the gift tax return? (b) What is the taxable amount? (c) When is the Tax Return due?

Name: on january 2 2023 mary bought shares of abc stock for 250000 on november 4 2024 she gave her brother jim the shares which were then worth 550000 mary had never before given a gift that excee 59543
Uploaded: 2023-12-06T17:54:15-08:00
Duration: 2 min 48 s
Channel: Akash M
Description: on january 2 2023 mary bought shares of abc stock for 250000 on november 4 2024 she gave her brother jim the shares which were then worth 550000 mary had never before given a gift that excee 59543

          On January 2, 2023, Mary bought shares of ABC stock for $250,000. On November 4, 2024, she gave her brother, Jim, the shares, which were then worth $550,000. Mary had never before given a gift that exceeded the annual exclusion amount. On the last trading day of the year 2024, the stock was worth $750,000. 
(a) What value is reported on the gift tax return? 
(b) What is the taxable amount?  
(c)  When is the Tax Return due?

Added by Matthew V.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Akash M

12/06/2023

Step 1

The value of the gift is based on the fair market value (FMV) of the shares at the time of the gift. On November 4, 2024, the shares were worth $550,000. Therefore, the value reported on the gift tax return is $550,000. Show more…

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On January 2, 2023, Mary bought shares of ABC stock for $250,000. On November 4, 2024, she gave her brother, Jim, the shares, which were then worth $550,000. Mary had never before given a gift that exceeded the annual exclusion amount. On the last trading day of the year 2024, the stock was worth $750,000. (a) What value is reported on the gift tax return? (b) What is the taxable amount? (c) When is the Tax Return due?