What Is the Maximum Yearly Amount That an Individual Can

question 124

Multiple Choice

What is the maximum yearly amount that an individual can give as a gift without incurring gift tax liability or having to report the gift to the IRS according to the Tax Cuts and Jobs Act?

• A)$5,000
• B)$15,000
• C)$17,000
• D)$20,000
• E)$25,000

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Definitions:

Indirect Materials

Materials used in the production process that do not directly become part of the finished product.

Manufacturing

The procedure of changing basic materials, components, or elements into end products that align with a customer’s needs or criteria.

Direct Materials

Raw materials that can be directly traced to the manufacturing process of a product and are a significant part of its cost.

Secondary Materials

Materials used in the production process that are not the primary raw materials.