Part 1 Estate and Gift Tax question: Joan gave

Part 1Estate and Gift Tax

In 2025 Joan gave her son $25,000 in cash. She is unmarried and made no other gifts. What must she do?

A Have her son report $25,000 as income
B File Form 709, but she owes no gift tax
C Pay gift tax on the $6,000 above the exclusion
D Nothing, since the gift is under her lifetime exemption

Show the answer and explanation

Answer: B. File Form 709, but she owes no gift tax

A gift of a present interest over the $19,000 annual exclusion to one donee requires a Form 709. The $6,000 excess is a taxable gift that uses part of Joan's $13,990,000 basic exclusion through the unified credit, so no tax is paid. Gifts are never income to the recipient. Source: IRC 6019, 2503(b), 2505; Form 709 instructions (2025), Who Must File. Tax year: 2025 (law as of 31 Dec 2025).

Common mistake

Skipping Form 709 because no tax is owed.

Practice more Part 1 Estate and Gift Tax questions

Exam-style questions with worked answers, then full timed mocks. Free to start.

Start practicing →

Study note: Estate and Gift Tax Part 1practice questions & mock exams

Related Part 1 practice questions

Matt and his wife, both U.S. citizens, agree to split gifts for 2025. Matt gives his niece $38,000 from his own account. What is the gift tax result?Ted died in 2025 leaving everything to his wife, so no estate tax was due and no return was required. His executor wants his unused exclusion available to his wife. What must the executor do?Dana is single and pays all the costs of her own home. Her widowed mother lives all year in a nursing home, and Dana pays more than half of that cost. Her mother's only income is $4,100 of interest. What is Dana's best 2025 filing status?

Build a daily practice habit — a few exam-style questions a day, with worked answers. Free to start.

Start practicing →

Original study material mapped to the public IRS SEE content outlines; not a real exam question.Not affiliated with or endorsed by the IRS or PSI. Verify figures and rules against current guidance before relying on them.