Classify each statement appearing below.
a.No taxable transfer occurs
b.Gift tax applies
c.Estate tax applies
-Hugh loans his adult daughter,Nadia,$800,000 to start her own business.Market rate interest is provided for,and Nadia signs a note that is payable in four years.Hugh dies two years later and,in his will,cancels the note.Nadia's business proved to be successful.

Question

Quizplus · Accepted Answer

The Answer of Classify each statement appearing below.
a.No taxable transfer occurs
b.Gift tax applies
c.Estate tax applies
-Hugh loans his adult daughter,Nadia,$800,000 to start her own business.Market rate interest is provided for,and Nadia signs a note that is payable in four years.Hugh dies two years later and,in his will,cancels the note.Nadia's business proved to be successful.

Classify Each Statement Appearing Below