Identify which of the following statements is true.
A)The gross-up rule applies to the gift tax triggered by a gift during a three-year look-forward period.
B)All gift taxes paid by the decedent on gifts made within five years of the date of death must be included in the gross estate.
C)If a transferor retains voting rights in stock of a controlled corporation for the transferor's lifetime, the stock is included in the transferor's gross estate.
D)All of the above are false.

Question

Quizplus · Accepted Answer

The other statements are false. The gross-up rule actually applies to the estate tax, not the gift tax. Only gift taxes paid within three years of the gift are included in the gross estate, not five years. And if the transferor retains voting rights in stock of a controlled corporation for the transferor's lifetime, the stock is not included in the gross estate.

Identify Which of the Following Statements Is True