Which,if Any,of the Following Is Not a Characteristic of the Federal

question 128

Multiple Choice

Which,if any,of the following is not a characteristic of the Federal estate tax?

• A)A foreign tax credit is available.
• B)Pre-1977 taxable gifts need to be considered.
• C)The generation-skipping transfer tax may also apply.
• D)A credit for tax on prior transfers may be available.
• E)A charitable deduction is available.

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Definitions:

Term Partnership

A partnership that is set up to run for a set time period or in order to accomplish a task of some sort.

Unlimited Liability

The legal obligation of business owners to pay all of their business debts personally, without limit, which exposes personal assets to risk.

Sole Proprietorship

A business formed by the sole proprietor. It is the easiest business organization to form.

Term Partnership Dissociation

The ending of a partner's association with a partnership for a predetermined term, as outlined by an agreement or law.