Beginning in 1999

Question

Beginning in 1999

Quizplus · Accepted Answer

Beginning in 1999, the annual allowable maximum exclusion for taxable gifts is adjusted for inflation. This means that the amount of gifts that can be given without being subject to gift tax increases each year to keep up with inflation. A) is incorrect because gifts to non-U.S. citizens may also be nontaxable under certain circumstances. B) is incorrect because estates and income are taxed at different rates and cannot be directly compared. D) is incorrect because the marital deduction has not been lowered for federal tax purposes.