American College Exam HS330 Topic 2 Question 99 Discussion

Actual exam question for American College's HS330 exam

Question #: 99
Topic #: 2

[All HS330 Questions]

Ignoring the annual per-donee exclusion, which of the following transfers is a gift for federal gift tax purposes?

AAn individual gratuitously performs valuable services for the benefit of a close friend.

BA father promises to buy his daughter a condominium when she finishes college.

CA grandmother pays her grandson's $30,000 tuition at an Ivy League university.

DA creditor cancels the promissory note of a recently unemployed friend as a charitable gesture.

Show Suggested Answer

Suggested Answer: C

by Tamra at Sep 19, 2024, 06:04 AM

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Lawana

26 days ago

Grandma's got deep pockets! I wonder if she's taking any more grandkids for Ivy League scholarships.

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Irene

27 days ago

Hey, if I start giving out free condos and tuition, can I write that off as a gift? Asking for a rich friend.

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Felicitas

1 months ago

Wait, so if I cancel my friend's debt, I have to pay taxes on that? That's just adding insult to injury!

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Hyman

3 days ago

A) An individual gratuitously performs valuable services for the benefit of a close friend.

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Joni

1 months ago

D is the correct answer. Canceling a promissory note is a transfer of property, so it's a gift for tax purposes.

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Francine

2 days ago

D) A creditor cancels the promissory note of a recently unemployed friend as a charitable gesture.

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Terina

7 days ago

C) A grandmother pays her grandson's $30,000 tuition at an Ivy League university.

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Arthur

8 days ago

B) A father promises to buy his daughter a condominium when she finishes college.

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Pete

19 days ago

A) An individual gratuitously performs valuable services for the benefit of a close friend.

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Aimee

2 months ago

Hmm, I'm not sure about that. Wouldn't the father's promise to buy the daughter a condominium also be considered a gift?

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Audry

3 days ago

B) I think the father's promise might not be considered a gift for federal gift tax purposes.

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Ma

8 days ago

C) A) An individual gratuitously performs valuable services for the benefit of a close friend.

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Nobuko

9 days ago

B) A father promises to buy his daughter a condominium when she finishes college.

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Tess

29 days ago

A) An individual gratuitously performs valuable services for the benefit of a close friend.

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Dino

1 months ago

B) A father promises to buy his daughter a condominium when she finishes college.

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Larae

1 months ago

A) An individual gratuitously performs valuable services for the benefit of a close friend.

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Larae

2 months ago

I think the answer is C. A grandmother paying her grandson's tuition is a clear-cut gift for federal gift tax purposes.

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Rikki

2 months ago

I'm not sure about option A, performing services might not be considered a gift for federal gift tax purposes.

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Georgene

2 months ago

I agree with Casey, option C seems like a gift because it involves transferring money for the benefit of someone else.

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Casey

2 months ago

I think option C is a gift because the grandmother is paying for her grandson's tuition.

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