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Question 1
In March 2003, Diana made an inter vivos gift of $11,000 to her great-grandson, Carson. In addition, she made another gift of $20,000 to her grandson, Armstrong. Lastly, she gave her sister, Kelly, $25,000 to use as a down payment on a house.
Correct
Incorrect!
Correct
Incorrect!
Correct The GST tax is imposed on transfers to persons more than two generations below the donor. Yet, just like the gift tax, there is the same annual exclusion amount. Here, the only two gifts considered to be given to individuals at least two generations below Diana are Carson and Armstrong. However, these gifts are eligible for the annual exclusion amount of $11,000. Accordingly, only the excess of the exclusion amount on Armstrong's gift is subject to the GST tax.
Incorrect! The GST tax is imposed on transfers to persons more than two generations below the donor. Yet, just like the gift tax, there is the same annual exclusion amount. Here, the only two gifts considered to be given to individuals at least two generations below Diana are Carson and Armstrong. However, these gifts are eligible for the annual exclusion amount of $11,000. Accordingly, only the excess of the exclusion amount on Armstrong's gift is subject to the GST tax.
