Which of the Following Statements Relating to the Federal Gift

question 214

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 cannot be less than 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) None of the above.

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Definitions:

Narragansett Indians

A Native American tribe originally from the Rhode Island area, known for their rich culture, history of resistance and adaptation during European colonization, and ongoing efforts to preserve their heritage.

Privateering

The practice of private individuals or ships authorized by a government engaging in maritime warfare under a commission of war.

Bartolome de Las Casas

A 16th-century Spanish friar and social reformer who advocated for the rights of indigenous peoples in the Americas.

Spanish Conquistadors

Explorers and soldiers from Spain who, during the 16th century, conquered much of the Americas and parts of what is now the southwestern United States.