31. Assume for 2013 that Don made one transfer involving his grandson as follows

Question

31.            Assume for 2013 that Don made one transfer involving his grandson as follows:  Don opened a joint checking account with his grandson, with right of survivorship, for his grandson

Assume for 2013 that Don made one transfer involving his grandson as follows: Don opened a joint checking account with his grandson, with right of survivorship, for his grandson's college expenses. Don made an initial deposit of $100,000. During 2013, grandfather wrote checks on the account to the university for grandson's tuition of $15,000 and grandson's living expenses of $20,000. What is the amount of the taxable gift for federal gift tax purposes?

Explanation / Answer

b. $6,000.

calculated as : $20,000-$14,000(annual exclusion)=$6,000

Note: checks on the account to the university for grandson

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