A is corrent. The requirement is to determine the incorrect statement regarding the unified transfer tax rate schedule. The unified transfer tax rate schedule applies the same tax rates on a cumulative basis to both life and death transfers. For example, during a person???s lifetime, a tax is first computed on cumulative lifetime taxable gifts, then is reduced by the tax on taxable gifts made in prior years in order to tax the current year???s gifts at applicable marginal rates.
B is incorrect. The unified transfer tax schedule applies on a cumulative basis to both life and death transfers.
C is incorrect. At death, a unified transfer tax is computed on total life and death transfers, then is reduced by the tax already paid on post-1976 gifts, the unified tax credit, foreign death taxes, and prior transfer taxes.
D is incorrect. The unified transfer tax schedule applies on a cumulative basis to both life and death transfers.
|
