select the correct answer\n\ntim gave his house in another city to his sister. he had to pay taxes to the…

select the correct answer\n\ntim gave his house in another city to his sister. he had to pay taxes to the government on this transfer. what type of tax did the government levy?\n\na. estate tax\n\nb. excise tax\n\nc. gift tax\n\nd. property tax\n\ne. sales tax

select the correct answer\n\ntim gave his house in another city to his sister. he had to pay taxes to the government on this transfer. what type of tax did the government levy?\n\na. estate tax\n\nb. excise tax\n\nc. gift tax\n\nd. property tax\n\ne. sales tax

Answer

Brief Explanations:

  • Estate tax: Applies to the transfer of an entire estate upon death, not a single - property gift during life.
  • Excise tax: Levied on specific goods (e.g., gasoline, tobacco) or activities, not property transfer.
  • Gift tax: Imposed when one person gives property (in this case, a house) to another. Tim is giving his house as a gift to his sister, so this tax is relevant.
  • Property tax: An annual tax on property ownership, not a one - time transfer tax.
  • Sales tax: Applies to the sale of goods and services, not a gift transfer of property.

Answer:

C. gift tax