The Computation of the Gift Tax Liability for a Current

question 96

Multiple Choice

The computation of the gift tax liability for a current year

• A) requires the use of different rates, depending on when the gifts were made.
• B) requires the use of current- year tax rates only.
• C) is made without reference to previous years.
• D) requires knowledge of the total gift taxes paid in previous years.

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Definitions:

Mailing Time

The duration it takes for correspondence to be delivered from the sender to the recipient.

Collection Float

The time period between when a check is deposited and when the funds become available in the recipient's account.

Net Float

Net float is the difference between the amount of checks written by a company and the amount that has been cleared and charged to the company's account, affecting its available balance.

Collection

The process of obtaining payment on outstanding accounts or the grouping of specific items, as in art or stamps.