Saturday, May 4, 2024
Taxation and Giving

1.2.1 Basic Quiz -- Gift Tax Overview
Any outright transfers, transfers in trust, direct transfers, and indirect transfers of real, personal, tangible and intangible property are potentially subject to gift tax.
     True      False
If a gift of property is made, the fair market value of the property shall be considered the amount of the gift.
     True      False
Where property is transferred to a person for less than full and adequate consideration, the amount of the gift is the fair market value of the property transferred.
     True      False
A donor must pay gift tax at the applicable gift tax rate if the gift is over $3,000.
     True      False
The Tax Code provides an unlimited gift tax deduction for gifts to charity and to spouses.
     True      False
The Tax Code provides an unlimited gift tax deduction for gifts to children and grandchildren if they are under the age of 24.
     True      False
If a gift is in excess of the annual exclusion and the available gift exemption, then gift tax most likely will be due.
     True      False
Because gift tax is imposed on the value of property transferred, many donors wish to discount the value of such property for gift tax valuation purposes.
     True      False
Family limited partnerships (FLPs), limited liability companies (LLCs) and grantor retained annuity trusts (GRATs) are popular methods for reducing values for gift and estate tax purposes.
     True      False
Generally, gift tax audits by the Internal Revenue Service focus on the validity of the valuation discounts taken by taxpayers.
     True      False



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