Identify Which of the Following Statements Is True

question 102

Multiple Choice

Identify which of the following statements is true.

• A)A purpose of the annual exclusion is to eliminate the necessity of accounting for and reporting small gifts such as those made for weddings and Christmas.
• B)The gift tax exclusion is available only for a gift of a present interest.
• C)A present interest is an unrestricted right to the immediate use, possession, or enjoyment of property or the income from property.
• D)All of the above are true.

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Definitions:

Discharge by Performance

The termination of contractual obligations by fully executing the duties and responsibilities outlined in the contract.

Contractual Duty

A legal obligation in a contract requiring a party to act or not act in a certain way.

Statute of Limitations

A statute that establishes the deadline by which legal cases must be filed after an incident occurs.

Discharge

The release or elimination of an obligation, such as a debt, under the law.