Which of the Following Statements Relating to the Federal Gift

question 118

Multiple Choice

Which of the following statements relating to the Federal gift tax is incorrect?

• A)The deemed paid credit allowed for a prior taxable gift always exceeds the gift tax that was actually paid.
• B)The issuance of an effective disclaimer by an heir will pass the property to another without being subject to the Federal gift tax.
• C)The annual exclusion is not available for gifts of future interests.
• D)Up to 5 years of annual exclusions can be available for gifts involving § 529 plans (qualified tuition programs).
• E)In computing the gift tax in situations where the parties have elected to split the gift, the past taxable gifts of both spouses must be taken into account.