Under the unified transfer tax rate schedule for 2017, which of the following is
ID: 2332647 • Letter: U
Question
Under the unified transfer tax rate schedule for 2017, which of the following is not correct?
Lifetime taxable gifts are taxed on a cumulative basis.
Transfers at death are taxed on a cumulative basis.
The unified rate schedule applies different rates for the gift tax and the estate tax.
The unified transfer tax is reduced by the unified transfer tax credit.
a)Lifetime taxable gifts are taxed on a cumulative basis.
b)Transfers at death are taxed on a cumulative basis.
c)The unified rate schedule applies different rates for the gift tax and the estate tax.
d)The unified transfer tax is reduced by the unified transfer tax credit.
Explanation / Answer
The incorrect statement is "c- The unified rate schedule applies different rates for the gift tax and the estate tax." The federal estate and gift tax rates were unified into one rate schedule with the Tax Reform Act of 1976. Both the taxes are subject to the same schedule of rates henceforth.
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