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1. Gift taxes are paid by the donees since they receive the cash or property.

True False

2. The gift tax is calculated based on the value of the total taxable gifts made in the current year and all prior years.

True False

3. The Tax Code provides an unlimited gift tax deduction for gifts to charity and spouses.

True False

4. Gifts made over 10 years ago and properly reported by a donor are not considered when determining a donor's current year gift tax liability.

True False

5. A donee may increase his or her basis in property received if gift tax was paid on the transfer.

True False

6. The gift tax exemption is unified to the estate tax exemption.

True False

7. If a donor makes taxable gifts that do not exceed his or her exemption, then the donor is entitled to a refund of the unused exemption.

True False

8. A gift tax return is filed on Form 709.

True False

9. Payment of any gift taxes is due when the gift tax return is due.

True False

10. Filing Form 709 will start the three-year statute of limitations clock.

True False

Basic Quiz - 1.2.6 Gift Tax Calculation and Form 709