Identify Which of the Following Statements Is False

question 105

Multiple Choice

Identify which of the following statements is false.

• A)The gift-splitting election will apply to all transfers made during the portion of any year that the spouses electing gift splitting are married to each other.
• B)The gift-splitting election is made separately on each gift either spouse makes.
• C)Making gifts during one's lifetime helps to reduce the amount of estate taxes owed at death.
• D)In order to use gift splitting, both spouses must be U.S. citizens or residents at the time of the transfer.

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Definitions:

Capital Loss

A reduction in the value of an investment relative to its purchase price.

Rate of Return

The profit or deficit achieved from an investment throughout a certain period, presented as a proportion of the original investment amount.

Cumulative Loss

The total amount lost over a period, taking into account all losses incurred during that time.

Rate of Return

The financial return or shortfall from an investment across a defined span, shown as a percentage of the investment's original price.