A Gift-Splitting Election

question 87

Multiple Choice

A gift-splitting election

• A)requires each spouse to give property.
• B)may reduce the amount of the taxable gifts of the donor-decedent.
• C)results in a $6,500 per donee annual exclusion for each spouse.
• D)is binding on future years.

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Definitions:

Consequential Damages

Refer to indirect damages resulting from a breach of contract, not caused directly by the breach but instead by the subsequent consequences of that breach.

Liquidated Damages

A provision in a contract that specifies a predetermined amount of money that must be paid as damages in the event of a breach by one of the parties.

Nominal Damages

Nominal Damages are a small sum awarded by a court when a legal wrong has occurred, but no significant actual loss was suffered by the plaintiff.

Compensatory Damages

Payments awarded to a plaintiff to compensate for harm, loss, or injury suffered due to another's wrongful act.