What is the basic rule for valuing a gift for gift tax purposes?
QUESTION
Which payments are excluded from gift tax when paid directly to the provider for someone else?
QUESTION
Identify what a "taxable gift" means for federal gift tax purposes.
Tap to flip before you grade
ANSWER
Gift amount exceeding exclusions and deductions for the year. Taxable gifts are calculated after subtracting the annual exclusion and any applicable deductions, forming the base for gift tax liability.