Tim 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?

estate tax


excise tax


gift tax


property tax


sales tax

Respuesta :

Answer:

The correct answer is Estate tax

Explanation:

Estate tax is the kind or type of tax, which is referred to the property that is transfer after the death of the person or person gifts or gave to someone.

In short, This tax is levy on the estates whose value exceed the exclusion limit stated by law.

So, in this case, tim gave the house to his sister and he pays the taxes on this transfer. Therefore, the tax of estate tax will be levied by government on Tim.

Answer: C. Gift act

Explanation: