Sandy gives a gift of $12,000 to each of the following people. Each of them used the money they received from Sandy to invest in shares of publicly trading companies. In which situation will the resulting dividend income NOT be attributed to Sandy?

Question

Quizplus · Accepted Answer

Dividend income from gifts given to a spouse or a minor child (under 18) is generally attributed back to the giver for tax purposes. However, gifts to other individuals, such as a business partner or a nephew who is not a minor, would not result in the dividend income being attributed back to the giver.

Sandy Gives a Gift of $12,000 to Each of the Following