If Ann and Bob decide to gift each member of their family
$1,000,000, they would be subject to a gift tax. IRC §2501(a)(5)(C)
explains that the U.S. asset value of the stock will be the same as the
fair market value at the time of transfer. IRC §2503(b)(2) describes
the inflation amount of how much of the gift will be taxed. Also, if a
gift exceed $17,000 in 2023 and Ann and Bob’s lifetime gift allowing
is $12.92 million. If Ann and Bob give each member of their family
$1,000,000, they will be taxed for any amount of $17,000 per
person, as well as being taxed for the difference of $22 million and
$12.92 million. (Villanova, 2023).
References
5 ways the rich can avoid the estate tax - smartasset. (n.d.). Retrieved
March 3, 2023, from https://smartasset.com/taxes/5-ways-the-rich-
can-avoid-the-estate-tax
Gift tax, explained: 2022 and 2023 exemptions and rates - SmartAsset.
(n.d.). Retrieved March 3, 2023, from https://smartasset.com/estate-
planning/gift-tax-explained-2021-exemption-and-rates
Legal Information Institute. (n.d.). 26 U.S. Code § 2501 - imposition of
tax. Legal Information Institute. Retrieved March 2, 2023, from
https://www.law.cornell.edu/uscode/text/26/2501
Legal Information Institute. (n.d.). 26 U.S. Code § 2503 - taxable gifts.
Legal Information Institute. Retrieved March 2, 2023, from
https://www.law.cornell.edu/uscode/text/26/2503
