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:

Melanin

A pigment produced by melanocytes in the skin, hair, and eyes, responsible for coloration and protection against ultraviolet light.

Itch Mite

A small parasite that causes severe itching by burrowing into the skin, leading to conditions such as scabies.

Contagious

Can be spread from one individual to another through either direct or indirect means of contact.

Pigment

Substances that give color to materials and biological tissues, used in painting, manufacturing, and various biological functions.