A gift tax must be paid if a person a. Receives money from the estate of a deceased relative. B. Receives gifts valuing more than $10,000 in any one year. C. Imports certain luxury items. D. Receives gifts of more than $100,000 in a lifetime, paid in increments of $10,000 per year.

Question

Social Studies

Juliet Barry

8 August, 08:17

A gift tax must be paid if a person a. Receives money from the estate of a deceased relative. B. Receives gifts valuing more than $10,000 in any one year. C. Imports certain luxury items. D. Receives gifts of more than $100,000 in a lifetime, paid in increments of $10,000 per year.

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Young · Answer 1

The correct answer is B. Receives gifts valuing more than $10,000 in any one year.

This gift tax is called the Annual Gift Tax Exclusion. Each doner is allowed an annual exclusion amount, but if the gifting passes that amount, the doner will be taxed, unless the donee agrees to make the payments instead.