gift tax


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Related to gift tax: inheritance tax, Form 709

gift tax

n. Federal tax on large gifts. Gifts to members of a family may be up to $10,000 a year to each plus a life-time $30,000 in gifts without tax. Several states also impose gift taxes. As with all tax questions, professional assistance in gift tax planning is vital.

References in periodicals archive ?
Therefore, because of the uncertainly about what Congress may or may not do in the future, a taxpayer who is considering making a $5 million tax-free gift in 2011 or 2012 might be concerned that either an additional gift tax will be assessed at the time a subsequent gift is made or an additional estate tax will be imposed upon death.
Since the non-voting interests are not readily marketable, they might be discounted for gift tax valuation purposes.
The estate argued the gift tax was the responsibility of the trustees and was paid by them, not Morgens, and therefore section 2035(b) should not apply The court disagreed, stating the QTIP provisions treated the QTIP as passing to Morgens from her late husband; thus, she was the deemed donor of the gift despite never having control of the ultimate disposition of the QTIP As the deemed owner, she was liable for the tax, and her right to recover that tax from the gift's recipients only shifted its financial burden, not the initial responsibility for reporting and paying the tax, according to the court.
The Federal gift tax is one of three taxes included in the current U.
Gift tax is never applicable if there is no transfer of a beneficial interest.
You can only give away $1 million during your life before there are gift tax consequences for giving to non-charitable donees," said Justin Ransome, Grant Thornton's technical practice leader for family wealth planning.
Morgens transferred her interest in the trust, the holders of the remainder interests would indemnify her for any gift tax liability on the transfer.
In the end, the donor receives a charitable contribution for income tax purposes in the year of the asset transfer, the charitable contribution is exempt from gift tax and the value of the charitable component now has been transferred out of the donor's estate for estate tax purposes.
estate and gift tax for 10 years on foreign corporate stock where the foreign corporation owns U.
If the stock does not appreciate in value, you may have used part of your estate tax exclusions and/or paid gift tax with no benefit to your heirs.
You may elect to treat a current-year contribution to a 529 plan as having been spread over five years for gift tax purposes, and thus, make a current year contribution of $60,000 per donee without gift tax consequences (assuming you have not previously made contributions to a 529 plan for a particular donee).
Pierre filed a gift tax return for 2000 that reported the gifts of the membership interests to the trusts.