Kenny Is Thinking of Making a Substantial Gift of Stock

question 62

Essay

Kenny is thinking of making a substantial gift of stock to his fiancée, Maria. The wedding is scheduled for October 1 of the current year. Kenny already has exhausted his unified credit. He also is considering giving $26,000 cash this year to each of his three children by a previous marriage. What tax issues should Kenny consider with respect to the gifts he plans to make to Maria and his three children?

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Definitions:

Marx's Theory

Represents the body of thought created by Karl Marx, focusing on the critique of capitalism, the class struggle, and the advocacy for a classless society.

Marxism

A socio-economic theory proposed by Karl Marx, advocating for a classless society and the abolition of private property.

Social Reality

The sum of the social constructs created by human beings, including beliefs, institutions, and social dynamics, that define and shape everyday life.

Labor Power

The ability of workers to perform work for the purpose of creating goods or services.