Property Can Be Transferred Within the Family Group by Gift

question 153

Multiple Choice

Property can be transferred within the family group by gift or at death.One motivation for preferring the gift approach is:

• A)To take advantage of the higher unified transfer tax credit available under the gift tax.
• B)To avoid a future decline in value of the property transferred.
• C)To take advantage of the per donee annual exclusion.
• D)To shift income to higher bracket donees.
• E)None of the above.

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Definitions:

Implicit Marginal Tax Rates

The indirect rates at which additional income is taxed, factoring in the loss of government benefits or subsidies as income increases.

Poverty Threshold

The minimum level of income deemed adequate in a particular country to live on, below which one is considered to be in poverty.

Low-Skill Workers

Individuals with minimal vocational training or qualifications, generally associated with lower-paying jobs.

Cumulative Share

The total percentage or portion of some quantity or number that is accumulated from a series of parts or contributions.