Last Year Brandon Opened a Savings Account with a Deposit

question 92

Essay

Last year Brandon opened a savings account with a deposit of $45,000. The account was in the name of Brandon and Melanie, joint tenancy with the right of survivorship. Melanie did not contribute to the account, but this year she withdrew $18,000. Has Brandon made a taxable gift to Melanie, and if so, in what amount?

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Definitions:

Shipping Costs

Expenses associated with the transportation of goods from one location to another.

Transfer Price

The price at which divisions of a company transact with each other, such as the trade of supplies or labor between departments.

General Rule

A principle or guideline that applies broadly across different contexts or situations, often serving as a standard for decision-making.

External Sales Price

The price at which a product or service is sold to customers outside of the company, as opposed to internal transfer pricing within different divisions of the same company.