Task: GIFT TAX FORM 709
Dale C. and Andrea M. Dixon (Social Security numbers 123–45–6789 and 123–45–6788) live at 912 Mockingbird Lane, Pine Bluff, AR 71602. Both are active in realestate ventures and in the past have developed and owned numerous shopping centersin various parts of Arkansas and northern Mississippi. They have two children,Calvin (age 21) and Cindy (age 22), both of whom attend college. During 2009, Daleand Andrea made the following transfers.
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Donor
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Transfer
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Dale
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Andrea
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Paid Falcon University for the college expensesrelating to Calvin and Cindy: tuition ($70,000),lodging ($7,000), and board ($9,000).
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43,000
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43,000
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Purchased a tract of undeveloped land in GrantCounty, listing title as ''Calvin and Cindy Dixon,joint tenants with right of survivorship.''
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100,000
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100,000
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Paid the medical providers (e.g., physicians,hospital) for Cheryl Dixon's heart surgery.Cheryl is Dale's mother but not a dependent ofthe Dixons.
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40,000
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Gave the Martins (Andrea's parents) an RV as ananniversary present.
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110,000
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Reimbursed Gail Nash (Dale's sister) for the legalexpenses she incurred in obtaining a divorce.Gail is not a dependent of the Dixons.
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30,000
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In 2008, the Dixons created several family trusts. As a result, they made taxablegifts of $2.1 million and paid a gift tax of $41,000. Prepare 2009 gift tax returns (Form 709) for the Dixons. As in the past, theDixons make the § 2513 election to split the gifts.