Mr.and Mrs.Keating want to give their son Dudley a total of $30,000.They each write him a check for $15,000 so they won't have to pay any gift tax.This is an example of:
A)fraud.
B)tax evasion.
C)tax exclusion.
D)tax avoidance.
E)tax deferred income.

Question

Quizplus · Accepted Answer

This is an example of tax avoidance, where individuals legally minimize their tax liability. By each giving $15,000, they stay within the annual gift tax exclusion limit, avoiding the need to pay gift tax.

MrAnd MrsKeating Want to Give Their Son Dudley a Total of of $30,000.They