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Jessica Is Doing Her Year-End Tax Planning and Is Concerned

Question 25

Multiple Choice

Jessica is doing her year-end tax planning and is concerned about gift taxes.If she comes to you for advice, which of the following would you tell her is a taxable gift?


A) Payment to the doctor for her gardener's medical expenses
B) Tuition paid to Norden University for her hairdresser's daughter, Trisha.
C) A donation to her favorite political organization
D) Buying a $20,000 car for Trisha when she goes away to Norden University

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