Yuli Wants to Help His Adult Grandson, Jerry, Become a CPA

question 37

Essay

Yuli wants to help his adult grandson, Jerry, become a CPA. He pays all of Jerry's tuition this year, which totals $20,000. He also pays $9,000 for Jerry's room and board at school. Yuli makes the payments directly to the school. What are the gift tax consequences?

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Definitions:

Continuing Resolutions

Temporary legislation passed by Congress to fund government operations and avoid government shutdowns when the annual budget bills have not been approved.

Federal Government Budget Process

The federal government budget process is a complex procedure through which government revenues and expenditures are planned, allocated, managed, and reviewed, involving both legislative and executive branches.

Federal Government Budget Process

The procedure by which the federal government of a country plans its expenditures and revenues for a specific fiscal year.

Entitlement Programs

Guaranteed benefits for those who qualify for government transfer programs such as Social Security and Medicare