Gift Tax

A gift tax is a tax on the transfer of property from one person to another. The gift tax is imposed on the donor, the person who gives the gift. The gift tax is not imposed on the recipient, the person who receives the gift.

The gift tax is not imposed on all gifts. There is a gift tax exemption for gifts of up to $15,000 per year per recipient. This means that you can give up to $15,000 to each of your children, grandchildren, and other relatives without having to pay any gift tax.

If you give more than $15,000 to a single recipient in a single year, you will have to pay gift tax on the amount over $15,000. The gift tax rate is the same as the income tax rate, up to 37%.

There are some exceptions to the gift tax rules. For example, gifts to a spouse or to a charity are not subject to the gift tax.

The gift tax is a complex topic. If you have any questions about the gift tax, you should consult with a tax advisor.

In addition to the gift tax, there is also a generation-skipping transfer tax (GST tax). The GST tax is imposed on transfers of property to grandchildren or other more distant descendants. The GST tax is not imposed on transfers to children or other more immediate descendants.

The GST tax is imposed at the same rates as the gift tax. However, the GST tax exemption is much smaller than the gift tax exemption. The GST tax exemption is only $5,500 per year per recipient.

If you make a gift that is subject to the GST tax, you will have to file a gift tax return. The gift tax return is due on the same date as your income tax return.

The gift tax and the GST tax are complex topics. If you have any questions about these taxes, you should consult with a tax advisor.