Suppose the virus arrives in the U. S. in the spring. Henry gets laid off for the remainder of the year, reducing this year's income by 50%. When he gets laid off, he expects to be rehired next year after the lockdowns end and earn his normal $50,000 next year. Under this scenario, Henry's budget line will shift from

Which of the following is true concerning the 5/5 lapse rule? a) the 5/5 lapse rule deems that a taxable gift has been made where a power to withdraw in excess of $5,000 or five percent of the trust assets is lapsed by the powerholder. b) the 5/5 lapse rule only comes into play with a single beneficiary trust. c) amounts that lapse under the 5/5 lapse rule qualify for the annual exclusion. d) gifts over the 5/5 lapse rule do not have to be disclosed on a gift tax return.