Which of the Following Statements Relating to the Federal Gift

question 97

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 will always exceed 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:

Capitalist Economy

An economic system based on private ownership of the means of production and the creation of goods or services for profit.

Regulation

The establishment of rules by government or other authorities to control or govern conduct within a specific area.

Substantial

Of considerable importance, size, or worth; a term indicating something that is large enough in magnitude or number to merit attention.

Industrialization

The transformation from agrarian societies to industrial economies, characterized by the development of manufacturing, technological advancement, and urban growth.