Discuss American College HS330 Exam Topic 1 Question 61

Which of the following is an example of a taxable gift for federal gift tax purposes?

AA father gives his 19-year-old daughter a note promising to give her his Rolls Royce when she reaches the age or 21.

BInstead of parents paying an outside executive $60,000, a son runs their business for 8 months without charging a fee.

CThe parents of a married son permit their son and his family to use a summer cottage that rents for$3,000 per month on a rent-free basis.

DA rather cancels a $50,000 note his daughter gave him when he made a loan to her 2 years ago.

Suggested Answer: D

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12 comments · newest first

Tijuana 11 months ago

Totally agree with you, FinanceFan! C seems sketchy too.

Denise 11 months ago

A promise for a future gift (A) isn't taxable until it's actually given.

Samira 12 months ago

Wait, are you sure about D? I thought loan forgiveness had different rules.

Benedict 12 months ago

I think C is also taxable since it's a rent-free arrangement.

Velda 12 months ago

Option D is definitely a taxable gift.

Elden 1 year ago

I practiced a similar question where the use of property was considered a gift, so I wonder if option C could be taxable too.

Annett 1 year ago

I feel like option A is tricky because it's just a promise, not an actual gift yet.

Jackie 1 year ago

I'm not entirely sure, but I remember something about gifts needing to have a present interest to be taxable.

Benton 1 year ago

I think option D might be the taxable gift since canceling a loan could be seen as giving money.

Gwenn 1 year ago

This is a tricky one. I'm not as familiar with the Deep Security Manager configuration, so I'll have to rely on my general knowledge of encryption settings and where they're typically managed. I'll give it my best shot.

Enola 1 year ago

Hmm, this is a tricky one. I know use case development is about capturing requirements and user interactions, but I'm not totally clear on the specific output. I'll have to think this through carefully before selecting an answer.

Tayna 1 year ago

I'm leaning towards the line chart option. Tracking the weekly mean absolute error over time could give us a clear, high-level view of how the model's accuracy has changed.

American College HS330 Exam - Topic 1 Question 61 Discussion