Question

Which of the following gifts would probable be held to be taxable to the person receiving the gift?

a. One thousand dollars given to a taxpayer by his or her father
b. An acre of land given to a taxpayer by a friend
c. A car given to a loyal employee by her supervisor when she retired to recognize her faithful service.
d. A Mercedes-Benz given to a taxpayer by his cousin
e. An interest in a partnership given to a taxpayer by his or her uncle

Answer 1

The correct answer is E

Step-by-step explanation:

The taxable is the term which is defined as the amount of income or gift which is used in order to compute that how much tax the company or an individual owes to the government in the stated or given tax period or year.

In case of gifts, the person pay the tax on the income which arises from the gift. So, in this situation, the gift which is probable to held taxable is an interest in the partnership which is given to the taxpayer through his or her uncle.