Question

This year Don and his son purchased real estate for an investment. The price of the property was $630,000, and the title named Don and his son as joint tenants with the right of survivorship. Don provided $358,000 of the purchase price and his son provided the remaining $272,000. Has Don made a taxable gift and, if so, in what amount

Answer 1

Answer:

$28,000

Explanation:

Calculation for Don taxable gift amount

Taxable gift amount=[$358,000 − ($630,000)/2] − $15,000

Taxable gift amount=[$358,000 −$315,000] − $15,000

Taxable gift amount=$43,000-$15,000

Taxable gift amount=$28,000

Therefore Don has made a taxable gift of the amount of $28,000