In Feb 2025, James (U.S. citizen) gives his fiancée Stacey (Canadian citizen) an engagement ring worth $18,500. After their October 2025 wedding, he gives her $250,000 cash. Which statement is NOT correct?
Question 5 options:
The ring qualifies for the $19,000 annual exclusion; no gift-tax return required for the ring.
James can apply the $190,000 annual exclusion for gifts to a non-citizen spouse in 2025.
The $250,000 cash gift qualifies for the unlimited marital deduction.
The $60,000 excess over $190,000 reduces James's lifetime exemption and must be reported on Form 709.