An Individual Can Give Away Up to $14,000 Per Year

question 38

True/False

An individual can give away up to $14,000 per year before paying an inheritance tax to the IRS.

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Definitions:

Supplies Account

An account used in accounting to track the cost of supplies spent over a specific period.

Accumulated Depreciation

The cumulative depreciation expense charged on a fixed asset throughout its useful life.

Contra-Liability

A liability account that is used to reduce the value of a related liability, not commonly used in accounting terminology.