Which of the Following Statements About the Federal Gift Tax

question 92

Multiple Choice

Which of the following statements about the federal gift tax is false?

• A)The tax is imposed on the donor.
• B)The tax is based on the fair market value of the gifted property.
• C)An individual can give away $5 million (adjusted for inflation)every year without being subject to tax.
• D)The donor's basis in the gifted property carries over to become the donee's basis.

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