Identify Which of the Following Statements Is False

question 41

Multiple Choice

Identify which of the following statements is false.

• A) Life estates are valued using actuarial tables.
• B) If an individual transfers property in trust and reserves the right to the trust's income for life, the individual retains a life estate.
• C) If a grantor transfers property in trust and names a beneficiary to receive only a term- certain interest and then the property is to return to the grantor, the transaction is not subject to gift tax.
• D) An individual who receives a remainder interest will receive property after the death of the holder of a life estate.

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Definitions:

EIC

Earned Income Credit, a refundable tax credit aimed at low- to moderate-income working individuals and families, particularly those with children, to reduce their tax liability and potentially qualify for a tax refund.

Foreign Income Tax

Taxes paid on income earned from sources outside the taxpayer's country of residence.

Foreign Tax Credit

A credit that reduces the U.S. federal income tax liability for taxpayers paying or accruing income tax to foreign countries, preventing double taxation.

Premium Tax Credit

A refundable tax credit designed to help eligible individuals and families with low to moderate income afford health insurance purchased through the Health Insurance Marketplace.