Question

In 2018, Joshua gave $15,000 worth of XYZ stock to his son. In 2019, the XYZ shares are worth $25,000. If Joshua had not given his son the stock in 2018 and held onto it instead, how much more would his estate have been worth than if he had made the gift

Answer 1

Joshua will not be responsible for paying any gift tax since the value of the share is precisely 15,000. In the year 2019, each share is worth a total of $25,000.00. Because there is no tax on gifts, the value of Joshua's inheritance would have been increased by $25,000 if he had not given the stock to his son in 2018, but instead kept it for himself. This is further explained below.

What is Internal Revenue Service?

Generally, The Internal Revenue Service is in charge of collecting taxes for the country and enforcing the Internal Revenue Code that Congress passed.

In conclusion, It has come to light that Joshua made a gift of XYZ shares worth $15,000 to his kid during the year 2018. This is regarded as a gift and hence may be subject to gift taxation. On the other hand, the Internal Revenue Service will not tax any gifts up to the value of $15,000 given in 2018.

Read more about Internal Revenue Service

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