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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8 days 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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14 days 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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20 days 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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22 days 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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25 days ago

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

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