Classify each of the following statements:
-Hector transfers funds to his aunt so she can obtain a much needed hip operation. The aunt does not qualify as Hector's dependent.

Question

Quizplus · Accepted Answer

Gift tax applies because Hector is transferring funds to his aunt without receiving anything in return, and since the aunt does not qualify as a dependent, this transfer is considered a gift for tax purposes. Estate tax does not apply as it is levied on the transfer of the estate of a deceased person.

Classify Each of the Following Statements