When property is transferred,the gift tax is based on
A)replacement cost of the transferred property.
B)fair market value on the date of transfer.
C)the transferor's original cost of the transferred property.
D)the transferor's depreciated cost of the transferred property.

Question

Quizplus · Accepted Answer

The gift tax is based on the fair market value of the transferred property on the date of transfer. This means that the value of the property as it would be sold in the open market is used as the basis for determining the gift tax. The replacement cost, the transferor's original cost, and the depreciated cost are not relevant factors in determining the gift tax.

When Property Is Transferred,the Gift Tax Is Based on