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.

---

Definitions:

WBC

WBC stands for white blood cells, which are part of the immune system and help the body fight infection and other diseases.

Sprain

An injury to a ligament caused by overstretching or tearing.

Inflammatory Response

The body's defense mechanism against infection, injury, or disease, resulting in redness, heat, swelling, and pain.

Ice

The solid form of water used to cool beverages, reduce swelling, or preserve food, among other applications.