Question

Which of the following items would not be subject to the federal gift tax? A Intangible property transferred by a nonresident alien. B Intangible property transferred by a resident alien. C Personal property transferred by a U.S. citizen D. Real estate transferred by a U.S. citizen

Answer 1

Answer: A. Intangible property transferred by a non-resident alien.

Explanation:

The gift taxation of property by a non resident alien's depends on the individual domicile. The transfer of real or tangible property by nonresident alien is subject to gift tax only if it is situated in United States. But in case of nonresident citizen of U.S., shall apply to a transfer only if the property situated within U.S. The gift tax is imposed by section 2501 shall apply whether the gift it direct or indirect, and whether the property is real or personal, tangible or intangible.

Therefore based on above explanation Intangible property transferred by a nonresident alien is not subjected to the federal gift tax, because all the remaining options were residents.