Identify Which of the Following Statements Is True

question 91

Multiple Choice

Identify which of the following statements is true.

• A)If the gifted property's FMV on the date of the gift exceeds its adjusted basis and the donor pays no gift tax, the donee's basis is the same as the donor's basis if the property is sold for a loss.
• B)Prospective donors should not dispose of property that has declined in value by selling it rather than gifting it.
• C)A $15,000 annual exclusion per donee is available for both gift tax and estate tax purposes.
• D)All of the above are false.

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Definitions:

Palmar Reflex

An involuntary response observed in infants, where the hand closes into a fist when the palm is touched, typically disappearing by 5-6 months of age.

Voluntary Grasping

An intentional act of seizing or holding onto an object using the hands or fingers, often seen as a developmental milestone in infants.

Brazelton Neonatal Behavioral Assessment Scale

A measure of a newborn’s motor behavior, response to stress, adaptive behavior, and control over physiological state.

Adaptive Behavior

The collection of conceptual, social, and practical skills that people have learned to be able to function in their everyday lives.