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:

P-value

A measure in statistical hypothesis testing representing the probability of obtaining a result at least as extreme as the one observed, under the assumption that the null hypothesis is true.

Confidence Interval

A set of numbers obtained from statistical data from a sample, which is expected to encompass the value of a parameter from the overall population that is not known.

Defective

Describes an item that fails to meet quality standards or specifications, often resulting in malfunction or unsuitability for intended use.

Proportion

A part, share, or number considered in comparative relation to a whole.