Gift tax liability could be incurred on which of the following transactions?

Question

Quizplus · Accepted Answer

The gift tax liability could be incurred on giving the gift of $35,000 to a son, as gifts exceeding the annual exclusion amount ($15,000 for 2021) are subject to gift tax. The other options listed do not trigger gift tax liability. Providing rent-free apartment for mother, babysitting for a grandchild, depositing into a joint checking account, and setting up a revocable trust are not considered gifts for gift tax purposes.

Gift Tax Liability Could Be Incurred on Which of the Following