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:

Losses

Financial outcomes where expenses exceed revenues, resulting in negative profit for a business or individual.

Gains

The increase in wealth or resources, often measured as the difference between the sale price and the purchase price of an asset.

Behavioral Economists

Scholars who study the impact of psychological, social, cognitive, and emotional factors on the economic decisions of individuals and institutions.

Weight on the Future

This key-term may refer to the emphasis or consideration given to future outcomes or consequences in decision-making processes.