In: Accounting
Wealth transfer taxes are paid during life or after death by the donor or the decedent's estate. Which of these is a wealth transfer tax?
1. |
Estate tax. |
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2. |
Gift tax. |
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3. |
Generation-skipping tax. |
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4. |
All of the above are wealth transfer taxes. |
Answer 4. All of the above are wealth transfer taxes.
A transfer tax is a tax on the passing of title to property from one person (or entity) to another.
In a narrow legal sense, a transfer tax is essentially a transaction fee imposed on the transfer of title to property. This kind of tax is typically imposed where there is a legal requirement for registration of the transfer, such as transfers of real estate, shares, or bond. Examples of such taxes include some forms of stamp duty, real estate transfer tax, gift taxes, generation skipping tax, and levies for the formal registration of a transfer.