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For federal income tax purposes, you would not pay tax on the gift itself, but you would pay a tax on the increase in value (its appreciation) from the time you inherit it until the time you sell it. As far as state income taxes, that depends on the particular state you are in, so you have to check that out with someone familiar with the tax laws of that state.
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Do you pay income tax on a gift from your brother or sister?
You don't pay income tax on the receipt of the gift. However, if the gift consists of property that has gone up in value, you may have a taxable capital gain when you sell or dispose of the gift. Your brother or sister, depending on the size of the gifts he or she gives, may have to pay a gift tax, which is different than an income tax.
Does an adult daughter have to pay tax on a 12000 gift from her parent?
If it is a gift from you to her, and YOU paid for it, if a tax is applied, you will pay it.
Do you pay gift tax on labor?
No
When would someone need a gift tax?
A gift tax is very rare and most Americans don't need to pay tax on ordinary gifts. The person who gives the gift, not the person who receives it, must pay the tax.
Do you pay sales tax on a car in MA if it was a gift?
There is no tax on a car given as a gift in MA.
Does the donee have to pay income tax on a gift?
No. If any gift tax is due, it is the responsibility of the donor. However, in extreme cases, the IRS may try to claim the gift if the donor fails to pay tax.
Is there a gift tax from father to daughters?
Yes, if the gift exceeds the gift-giver's annual exemption of $15,000 per recipient, the gift giver must pay the gift tax.
Does the recipent of a gift pay tax?
Gift taxes are owed by the party who gives the gift and not the recipient.
What is gift tax if give house as gift?
I just gave to my house title to my son (21 years old). The title has life estate in it. Is there is any gift tax do i have to pay? or my son have to pay any tax? I live in California jamie
Who pay gift tax?
The person making a large gift (i.e., over $15,000 in 2012) would owe the tax.
If you receive money from your grandparents do you have to pay tax?
No. They may have to pay gift tax. See discussions under that topic.
Is a gift from parent to adult children taxable to children?
Not if it is a true gift. People often misuse the term "gift" to disguise some other type of payment that may be taxable. For example, if you spend 40 hours a week digging ditches and at the end of the week the person who told you to dig gives you a "gift," calling it a gift does not change the fact that it is a taxable wage. And you may have to pay tax if you dispose of a gift of appreciated property. Let's say your parent bought stock for $1 a share some years ago and gives it to you. You won't pay tax on the gift itself, but if the stock is now worth $100 a share, you will pay tax on the $99 difference when you sell it. Unfortunately, it doesn't work the other way around. If your parent paid $100 for the stock but it is worth $1 on the day of the gift and you immediately sell it, you don't get a $99 deduction (capital loss). There may be some cases in which the IRS can reclaim part of the gift. For example, if the gift constituted a fraudulent transfer to evade paying tax or if the parent does not have enough assets remaining to pay any gift tax that may apply.
