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lesantik [10]
3 years ago
13

Grandma and Grandpa Generous had many children, but they have only one grandchild,Harold. Grandma and Grandpa would like to give

him a gift of $5.43 million. Upon the transfer to Harold, for which taxes will Grandma and Grandpa Generoushave a current liability? Assume Grandma and Grandpa have exhausted their lifetime gifttax exemption
Business
1 answer:
Leni [432]3 years ago
8 0

Answer:

Gift Tax GSTT

Explanation:

In such a scenario, Grandma and Grandpa Generoushave a current liability to the Gift Tax GSTT. This tax rate applies to Grandma and Grandpa Generous because the gift exceeds the limit per individual for gifting and because they have exhausted their lifetime gift-tax exemption. Meaning that they have to pay taxes on this gift of $5.43 million which according to the GSTT guidelines is a fixed rate of 40% of the gift that was given.

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Answer:

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Explanation:

The life-cycle theory proposes that the United States boosted worldwide economic trade exporting their products. At first, the products were delivered to other world developed countries. Over time, those developed countries started to study American products to become manufacturers. This implies competition so to spend fewer costs, the developed countries took their operations to developing nations.

After some time, it is believed that those developing countries are likely to become manufacturers as well at even cheaper costs provoking that the United States begin to import products from the developing nations.

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