[MCLKT]

Looking at CPA review materials for 10 – 12 hours a day can make you feel crazy…

Gift Tax Exclusion question in Wiley....

2013 gift $15k to a friend to use for tuition.

What is the maximum exclusion allowed?

I think, 2013… hmm… it’s $14,000.

But that isn’t an option!?

a. 0

b. 12k

c. 13k

d. 15k

Ok… 2013… they are trying to trick me, right? Does this have something to do with the tuition?

$15k would be excluded if paid directly to school, so that’s not right.

Is it $0??? What gives???

https://postimg.org/image/ur9epyw2n/

LOL! It’s 2 am, maybe I should just sleep.

A:[73]97 F:[74]85 R:86 B:[74]82
*NINJA 10 Pt. COMBO & Yaeger*

[SeattleAccountant]

Don't you love these type of mishaps?

This is always a fear to me to see one of those situations on the actual exam.

Try clicking on $13K.My bet is that Wiley updated the question & answer but kept the old options for answer.

You are completely right:

If paid directly to educ. institution = exclude all

If paid to person for whatever reason including education = exclude allowable amount (2012: $13K, 2013: $14K) and record the rest for the cumulative gift tax purposes.

Becker Class of Jan - Aug 2013: FARB DONE!!!!
CPA license pending 🙂

[SeattleAccountant]

double post, getting late into the night.

Becker Class of Jan - Aug 2013: FARB DONE!!!!
CPA license pending 🙂

[Anonymous]

I feel your pain! I made $40,000 = $120,000 once while studying!

[KellyP]

I had the same reaction when I got that question. I just went with the 13k lol

AUD - 80
BEC - 83
FAR - 87
REG - 65, 77 5/28/13

*Good-bye Social Life. . .Hello CPA*

[Author]

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