Question

gift tax falls under which tax category?
a. payroll tax
b. property tax
c. purchase tax
d. wealth tax

please select the best answer from the choices provided

○ a
○ b
○ c
○ d

Explanation:

Gift tax is a tax on the transfer of wealth (assets given as gifts) without receiving equivalent value in return. Wealth taxes are levied on the net worth or transfer of wealth. Payroll tax is related to employment compensation, property tax to property ownership, and purchase tax to buying goods/services. So gift tax falls under wealth tax.

Answer:

d. Wealth tax