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In: Accounting

Ned Norris, a widower, engaged in a transactions described below during 2017. He made only one...

Ned Norris, a widower, engaged in a transactions described below during 2017. He made only one earlier taxable gift, $1.2 million in 2014. Use this information to prepare a 2017 gift tax return (Form 709) for Mr. Norris, who resides at (the address info). Pages 4 and 5 of the form are not applicable.

. Transfer of title to unimproved land to son Nathan, age 31, fair market value of $2 million and adjusted basis of $300,000

. Payment of tuition ($35,000) to Private College and payment of off-campus apartment rent ($18,000) to Tall Tower, LLC for the benefit of daughter Natalie, age 21

. Transfer of title to vacation beach house to County Hospital, fair market value of $525,000 and adjusted basis of $320,000.

. Payment of $17,000nlife insurance premium on an insurance policy on his own life. He made a gift of the insurance policy to Nathan four years ago.

Solutions

Expert Solution

Gift tax return of 2017:

Particulars Amount
Transfer of title to son Not taxable
Transfer of title to vacation beach house to County Hospital $ 2,05,000

Less:Exemptions

 ($ 70,000)
Taxable income $ 1,35,000

ekkarill92 answered 2 years ago
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