Fran and her husband, Stan, own their residence in joint tenancy with right of survivorship. Until recently, the property was held solely in Fran's name. Then, at the suggestion of her advisers, Fran changed the title. Stan furnished no consideration at the time of transfer.Which one of the following statements concerning the gift tax treatment of the transfer from Fran to Stan is correct? A)There is a taxable gift of one-half of the value of the residence, less the amount of the annual exclusion. B)Fran has no gift tax liability because the annual exclusion and the gift tax marital deduction reduce the taxable gift to zero. C)Fran has made a taxable gift of one-half of the value of the residence because Stan paid no consideration. D)Stan has made a taxable gift of one-half of the value of the property.

Gift tax charges on the value of large gifts which is transferred and affect the wealth without any…

Answered: Fran has made a taxable gift of…

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter21: Partnerships

Section: Chapter Questions

Problem 29P

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Fran and her husband, Stan, own their residence in joint tenancy with right of survivorship. Until recently, the property was held solely in Fran's name. Then, at the suggestion of her advisers, Fran changed the title. Stan furnished no consideration at the time of transfer.

Which one of the following statements concerning the gift tax treatment of the transfer from Fran to Stan is correct?

There is a taxable gift of one-half of the value of the residence, less the amount of the annual exclusion.

Fran has no gift tax liability because the annual exclusion and the gift tax marital deduction reduce the taxable gift to zero.

Fran has made a taxable gift of one-half of the value of the residence because Stan paid no consideration.

Stan has made a taxable gift of one-half of the value of the property.

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