When appreciated property is transferred, the gift tax is based on
A)replacement cost of the property
B)fair market value of the property on the date of the gift
C)the donor's original cost of the property
D)the donor's original cost increased by half of the appreciation

Question

Quizplus · Accepted Answer

The gift tax is based on the fair market value of the property on the date of the gift. This value is used to determine the amount of the gift for tax purposes.

When Appreciated Property Is Transferred, the Gift Tax Is Based