American College Exam HS330 Topic 3 Question 107 Discussion

Actual exam question for American College's HS330 exam

Question #: 107
Topic #: 3

Transactions involving a taxable gift include which of the following?

1. A father bought real estate, paid the entire $180,000 purchase price, and titled it jointly with his son with right of survivorship.

2. A father deposited $50,000 in a bank account titled jointly with his daughter with right of survivorship and died before any funds were withdrawn from the account.

Al only

BII only

CBoth l and ll

DNeither I nor II

Show Suggested Answer

Suggested Answer: B

by Arlie at Feb 11, 2025, 04:04 AM

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Lashon

17 days ago

Ah, the old 'taxable gift' question. I bet the IRS loves to see these on exams, just to keep us on our toes. I mean, who doesn't love a good ol' fashioned tax surprise?

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Jerry

22 days ago

I'm going with C. The father is basically giving away his assets to his kids, and that's considered a taxable gift, even if it's in the form of joint ownership. Easy peasy!

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Geraldine

1 days ago

I agree, C seems like the correct choice. The father is transferring ownership to his children, which is a taxable gift.

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Timothy

25 days ago

Hmm, this is a tough one. I'm leaning towards D, but I'm not completely confident. Maybe I should review the gift tax rules again.

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Luz

26 days ago

I'm not sure about this one. It's tricky with the right of survivorship thing. I'll have to think about it some more.

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Pansy

8 days ago

User 3: I'm not sure, I need to review the options again.

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Simona

9 days ago

User 2: I agree, the right of survivorship makes it a taxable gift.

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Nu

18 days ago

User 1: I think it's both l and ll.

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Lai

1 months ago

I think the answer is C. Both I and II involve taxable gifts, as the father is transferring ownership of the real estate and the bank account to his children during his lifetime.

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