The gift of an income-producing asset, for purposes of shifting tax liability on the income to the donee, is never completed until the donor irrevocably transfers ownership to the donee.

Question

Quizplus · Accepted Answer

The statement is true. Until the ownership of the income-producing asset is irrevocably transferred to the donee, the donor still retains control and is responsible for the taxes on any income generated by the asset.

The Gift of an Income-Producing Asset, for Purposes of Shifting