Gift tax liability could be incurred on this transaction:

Question

Quizplus · Accepted Answer

The gift tax applies to any transfer of property from one person to another without receiving full value in return. The gift of $35,000 to the son exceeds the annual gift tax exclusion amount of $15,000 per person per year, which means that there could be a potential gift tax liability. The other transactions listed do not create a gift tax liability because there is either no transfer of property or the value transferred is below the annual gift tax exclusion amount.

Gift Tax Liability Could Be Incurred on This Transaction