Gift Tax Liability Could Be Incurred on Which of the Following

question 115

Multiple Choice

Gift tax liability could be incurred on which of the following transactions?

• A)Providing rent-free apartment for mother
• B)1,000 hours of babysitting for grandchild
• C)Son's deposit into husband-wife joint checking account
• D)Setting up a revocable trust
• E)$35,000 given to son

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Definitions:

Joint Proprietorship

A business ownership structure where two or more individuals share the ownership, responsibilities, and liabilities of the business.

Partnership

A business structure in which two or more individuals manage and operate a business in accordance with the terms and objectives set out in a Partnership Agreement.

Income Tax Return

A document filed with tax authorities detailing income earned, tax deductions taken, and taxes owed for the year.

Entity

Any organization, institution, or being that has a distinct existence, legally recognized as capable of rights and duties.