Question

Why are the gift and estate taxes called wealth transfer​ taxes? what is the tax base for computing each of these​ taxes? why are the gift and estate taxes called wealth transfer​ taxes?
a. gift and estate taxes are both imposed on the​ donee, freeing the donor from paying taxes on the property.
b. gift and estate taxes are levied when a transfer of wealth​ (property) takes place and are based on the original purchase price of the transferred property.
c. gift and estate taxes are levied when a transfer of wealth​ (property) takes place and are part of the unified transfer tax system.
d. none of the above. what is the tax base for computing each of these​ taxes?
a. tax base for the gift tax​ is: fair market value of all gifts made in the current year minus an annual donee exclusion of​ $13,000 total for 20172017 and minus other applicable deductions. tax base for the estate tax​ is: the​ decedent's gross​ estate, plus taxable gifts made before​ 1976, minus the marital​ deduction, plus charitable deductions and minus a deduction for expenses if applicable.
b. tax base for the estate tax​ is: fair market value of all gifts made in the current year minus an annual donee exclusion of​ $13,000 per donee for 20172017 and minus other applicable deductions. tax base for the gift tax​ is: the​ decedent's gross​ estate, minus taxable gifts made after​ 1976, minus the marital​ deduction, minus charitable deductions and minus a deduction for expenses if applicable.
c. tax base for the gift tax​ is: fair market value of all gifts made in the current year minus an annual donee exclusion of $ 14 comma 000$14,000​, minus a marital deduction for gifts to spouse and charitable deduction if​ applicable, plus the value of all taxable gifts in prior years. the tax base for the estate tax​ is: the​ decedent's gross​ estate, minus deductions for​ expenses, and a marital or charitable deduction if​ applicable, plus taxable gifts made after 1976.
d. tax base for the gift tax​ is: original purchase price of all gifts made in the current?

Answer 1

• For the first question, the answer is Letter C. The Gift and estate taxes are called wealth transfer taxes because gift and estate taxes are levied when a transfer of wealth or property takes place and are part of the unified transfer tax system.


• For the second question, the answer is Letter C. The tax base for the gift tax is reasonable market value of all gifts completed in the current year minus an annual donee elimination of $14,000, minus a marital deduction for gifts to spouse and charitable deduction if applicable, plus the value of all taxable gifts in preceding years. The tax base for the estate tax is the gross estate of the decedent, minus deductions for expenditures, and a marital or charitable deduction if applicable, plus taxable gifts made after 1976.