Identify which of the following statements is true.
A)A purpose of the annual exclusion is to eliminate the necessity of accounting for and reporting small gifts such as those made for weddings and Christmas.
B)The gift tax exclusion is available only for a gift of a present interest.
C)A present interest is an unrestricted right to the immediate use, possession, or enjoyment of property or the income from property.
D)All of the above are true.

Question

Quizplus · Accepted Answer

A) The annual exclusion is indeed intended to alleviate the need for accounting and reporting for small gifts given on special occasions.
B) The gift tax exclusion is applicable only for present interests.
C) Present interest is exactly a right to have unrestricted control and use of the asset or its income, such that the gift has value right now, that is, in the present.

Identify Which of the Following Statements Is True