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GiftLaw Pro Home   >  Chapter 1 - Taxation and Giving  >  1.2 Gift Tax Deductions  >  1.2.3 Gift Exemption  >  Basic Quiz

Basic Quiz - 1.2.3 Gift Exemption

1. If a donor uses his or her annual gift exclusion to offset part of the tax on a gift he or she is prohibited from also using a portion of his or her lifetime gift exemption.
           
2. In 2010, the gift tax was eliminated.
           
3. The gift and estate tax credits are unified.
           
4. The gift exemption has remained the same over the last 10 years.
           
5. The gift tax is imposed on the value of all total gifts made in the current year and in all prior years.
           
6. If a donor makes taxable gifts that do not exceed his or her gift tax credit, then the donor is entitled to a refund of the unused credit amount.
           
7. A gift tax return is filed on Form 709, which is due on the 15th of January.
           
8. Gifts made over 15 years ago and properly reported by a donor on the Form 709 are not considered when determining a donor's current year gift tax liability.
           
9. A common strategy for leveraging the gift exemption is to create a family limited partnership and then make gifts of limited partnership interests to children.
           
10. Incomplete gifts may be challenged by the IRS, causing adverse gift tax results.