Ida Sells Some Stock to Mae for $20,000 at a Time

question 7

Essay

Ida sells some stock to Mae for $20,000 at a time when the stock is valued at $50,000.Later in the year,she gives Mae $15,000 in cash.
a)What is the amount of Ida's taxable gifts?
b)How would your answer to Part (a)change if Ida gave the cash to Jonathan instead of to Mae?

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Definitions:

Primitive Wishes

Fundamental desires or urges that are innate or basic, often related to survival, pleasure, or instinctual needs.

Self-Censorship

The act of censoring or restricting oneself from expressing thoughts, ideas, or feelings that are believed to be unacceptable or controversial.

Freud

Sigmund Freud, an Austrian neurologist and the founder of psychoanalysis, a method for treating psychopathology through dialogue.

Limbic System

A complex system of nerves and networks in the brain, involved in basic emotions and drives.