Identify which of the following statements is true.
A)The gift tax is a wealth transfer tax that applies to transfers during a person's lifetime and transfers at death.
B)The gift tax is not a part of the unified transfer tax system.
C)Under the unified transfer tax system, taxable gifts made after 1976 are included in the donor's death tax base.
D)All of the above are false.

Question

Quizplus · Accepted Answer

The statement "Under the unified transfer tax system, taxable gifts made after 1976 are included in the donor's death tax base" is true. The gift tax is a separate tax from the estate tax, but under the unified transfer tax system, the gift tax is included in the donor's total transfer tax base, which includes the estate tax as well. Option A is incorrect because the gift tax only applies to transfers during a person's lifetime, not at death. Option B is incorrect because the gift tax is indeed part of the unified transfer tax system. Option D is incorrect because option C is true.

Identify Which of the Following Statements Is True