Question 17The gift tax is an excise tax on the right of one person to transfer his/her property to another person and the tax must be paid by the donee. True False Question 18True or False. One of the purposes of the gift tax, now known as the inter vivos transfer tax, is to prevent people from avoiding the estate tax by giving away their property before death. True False Question 19The formula for computing the federal gift tax payable on taxable gifts made in 2020 has the following steps: 1. Calculate the tax on all taxable gifts. 2. Calculate the tax on all taxable gifts made in years prior to 2020. 3. Subtract the number calculated in step 2 from the number calculated in step 1. 4. Subtract the donor's unused gift tax unified credit from the number calculated in step 3. True False

Gift tax refers to the tax imposed when a person transfers something having a value in monetary…

Answered: the tax must be paid by the donee.…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question 17

The gift tax is an excise tax on the right of one person to transfer his/her property to another person and the tax must be paid by the donee.

True

False

Question 18

True or False. One of the purposes of the gift tax, now known as the inter vivos transfer tax, is to prevent people from avoiding the estate tax by giving away their property before death.

True

False

Question 19

The formula for computing the federal gift tax payable on taxable gifts made in 2020 has the following steps: 1. Calculate the tax on all taxable gifts. 2. Calculate the tax on all taxable gifts made in years prior to 2020. 3. Subtract the number calculated in step 2 from the number calculated in step 1. 4. Subtract the donor's unused gift tax unified credit from the number calculated in step 3.

True

False

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