PF: Chapter 10 Lesson 5 Taxes on Other Types of Income

What is a wealth tax?

• A tax on gifts

• A tax on income

• A tax on assets

• A tax on property

Which of the following is considered a wealth tax?

• Income tax

• Sales tax

• Property tax

• Excise tax

What are the types of taxes that could potentially come into play when receiving an inheritance?

• Capital gains tax, sales tax, and property tax

• Capital gains tax, inheritance tax, and estate tax

• Income tax, estate tax, and gift tax

• Sales tax, property tax, and gift tax

What is a gift tax?

• A tax on property received as a gift

• A tax on income from gifts

• A tax on the value of gifts given

• A tax on the sale of gifts

Which level of government relies on property tax as the main source of revenue?

• Local government

• State government

• Federal government

• Municipal government

What is the purpose of adjusting your W-4?

• To increase your taxable income

• To decrease your taxable income

• To decrease your tax refund

• To increase your tax refund

What can be done to lower taxable income when itemizing deductions?

• Starting a business

• Purchasing real estate

• Investing in stocks and bonds

• Donating to charities and organizations

Which group of Americans pay the majority of the total income tax?

• The top 1%

• The middle class

• The top 10%

• The lower class

What is the main benefit of giving to charities and organizations?

• Reducing your tax rate

• Avoiding paying taxes

• Lowering your taxable income

• Increasing your wealth

What is the purpose of an estate tax?

• To tax the inheritance received by family members

• To tax the value of the deceased's assets

• To tax the income of the deceased

• To tax the sale of inherited property