Tax Questions

Are these true or false?

(1) A state cannot levy a tax on a business unless the business was incorporated in the state.

(2) A person who died on December 31, 2005, may pay more estate tax than one, similarly situated, who died on January 1, 2006.

(3) Even if no gift tax is due, a Federal gift tax return may need to be filed.

(4) Under some circumstances, the Federal gift tax may be imposed on the done.

(5) An inheritance tax is a tax on the right of a decedent to pass property at death.

(6) The Federal gift and estate taxes are imposed on the value of the assets transferred gratuitously during life or at death.

(7) Sometimes also known as transaction taxes, Federal gift and estate taxes are excise taxes.