Identify Which of the Following Statements Is True

question 31

Multiple Choice

Identify which of the following statements is true.

• A)Cash paid directly to a medical school for room and board is a "qualified transfer" and not subject to the gift tax.
• B)Transfers by an individual to a political party constitute a gift subject to the gift tax rules.
• C)A statutory exemption from the gift tax is available for property transfers between divorced individuals when the divorce occurs during a three-year period beginning one year before the transfer agreement is made.
• D)All of the above are false.

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Definitions:

Employer-Independent Contractor

A working relationship where the contractor provides services under a contract for a specific task, without being entitled to employee benefits or subject to the same control as an employee.

Independent Contractors

Individuals or entities hired to perform specific tasks or services, who maintain control over how their work is completed, rather than employees.

Authorizes

To give official permission or power to someone to do something.

Building Contractors

are professionals involved in the planning, leading, execution, supervision, and inspection of a building construction process.