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25 votes
25 votes
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

User Denis Bazhenov
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1 Answer

12 votes
12 votes

Answer:

$28,000

Step-by-step 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

User Kushagra Sharma
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