Which of the Following Is a True Statement About the Federal

question 49

Multiple Choice

Which of the following is a true statement about the federal gift tax return (Form 709) ?

• A)Form 709 is due by the 15 ^th day of the ninth month following the date of the gift.
• B)Form 709 must be filed if a taxpayer wishes to elect gift-splitting.
• C)Form 709 need not be filed unless a taxpayer's taxable gifts exceed the exemption equivalent.
• D)Form 709 is due nine months after the death of the decedent.
• E)None of the choices are true.

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Definitions:

Marginal Tax Rate

The rate at which the last dollar of a taxpayer's income is taxed, indicating the proportion of any additional income that will be taken in taxes.

Average Tax Rate

A calculation resulting from dividing an individual's or entity's total tax payments by their total taxable income, indicating the portion of income paid in taxes.

Federal Government

The national government of the United States, which governs at the country level, consisting of the legislative, executive, and judicial branches.

Franklin Roosevelt

The 32nd President of the United States, serving from 1933 to 1945, known for his New Deal programs during the Great Depression.