Which of the Following Situations Requires That a Gift Tax

question 33

Multiple Choice

Which of the following situations requires that a gift tax return be filed?

• A)George gives wife, Laura, a new car for her birthday.
• B)Yanisha makes gifts of $3,000 of present interest property to each of her nieces and nephews.
• C)Archie pays the hospital medical bills for his friend Paige.
• D)Ida purchases a beach home, listing Mark as a joint tenant. Mark provides no consideration for the home.

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Definitions:

Net Price

The price of a good or service after deductions such as discounts, rebates, and allowances have been taken into account.

List Price

The manufacturer's suggested retail price (MSRP) or the price at which a product is intended to be sold before any discounts or promotions.

Single Rate

A fixed interest rate that remains constant throughout the term of the loan or investment.

Discount

A reduction applied to the regular price of goods or services, usually offered to encourage purchase or reward customers.