The Recipient of a Gift Within the Allowable Amount

question 35

Multiple Choice

The recipient of a gift within the allowable amount

• A) does not have to report the gift, and it is not subject to taxes.
• B) does have to report the gift, and it is subject to taxes.
• C) must pay tax on the gift at the capital gains rate.
• D) must pay tax on the gift at the ordinary income rate.

---

Definitions:

Networking Systems

Encompasses the hardware and software enabling computers and devices to communicate and share resources over a network.

Computer Science

The study of computers and algorithmic processes, including their principles, their software and hardware designs, and their applications.

Information Technology

The use of computers, networking, and telecommunications to create, process, store, secure, and exchange all forms of electronic data for various applications.

Special Effects

Visual or audio effects used in film, television, theatre, video game, and simulator industries to simulate imagined events in a story or virtual world.