Watch Related Videos
comments
There are several gift tax questions that people have about this confusing tax. The laws of gifts and inheritances are some of the most confusing in all the tax codes.
What Is a Gift Tax?
A gift tax is usually applied to any transfer that is valuable that has no monetary, or monetary value, exchanged during the transfer. For instance, if you were given $10,000 as a graduation gift from your grandparents, you would be liable for the taxes on it.
Are There Exclusions?
While anything deemed a gift in monetary value is taxable, there are some exceptions to this rule. Any gift to a political campaign, or gifts to your spouse, or those given for tuition are not taxable.
Can You Deduct a Gift You Have Given?
One of the biggest gift tax questions is whether or not you can claim a deduction for a gift you have given. With only the exception of a gift to a charitable organization, you are not allowed to deduct any gift.
Do I Pay Gift Taxes on Property I Sold?
You only pay gift taxes on a gift of property that is later sold if you sold the property and made a profit on it. Although this rule generally applies to stocks, it can also apply to other situations. Typically you are held to the initial base that the donor of the gift bought the property at. You would then pay a tax of the gain of the sale.
What Is a Gift Tax?
A gift tax is usually applied to any transfer that is valuable that has no monetary, or monetary value, exchanged during the transfer. For instance, if you were given $10,000 as a graduation gift from your grandparents, you would be liable for the taxes on it.
Are There Exclusions?
While anything deemed a gift in monetary value is taxable, there are some exceptions to this rule. Any gift to a political campaign, or gifts to your spouse, or those given for tuition are not taxable.
Can You Deduct a Gift You Have Given?
One of the biggest gift tax questions is whether or not you can claim a deduction for a gift you have given. With only the exception of a gift to a charitable organization, you are not allowed to deduct any gift.
Do I Pay Gift Taxes on Property I Sold?
You only pay gift taxes on a gift of property that is later sold if you sold the property and made a profit on it. Although this rule generally applies to stocks, it can also apply to other situations. Typically you are held to the initial base that the donor of the gift bought the property at. You would then pay a tax of the gain of the sale.
