In most countries it is the GIVER that is responsible for paying tax. However, if the gift is sent between countries, the recipient my have to pay the local import duties/vat as the giver is not in the jurisdiction of the local tax authorities.
Federal gift taxes are not paid by the recipient. However, in the rare case where the donor does not have the resources to pay gift taxes they may owe, the IRS might try to recover some or all of the gift from the recipient. The donor may owe a gift tax depending on the size of the gift and depending on what other gifts the donor has given.
The recipient of a gift has absolutely no tax obligation under IRS code. Gifts are not considered income. § 102.
Federal gift taxes are not paid by the recipient. However, in the rare case where the donor does not have the resources to pay gift taxes they may owe, the IRS might try to recover some or all of the gift from the recipient. Since you posted this question in the Car Buying category: Some states may impose a sales tax on the Blue Book value of the car being transferred. This is a matter of state law and you should check with your DMV for details.
Yes, if the gift exceeds the gift-giver's annual exemption of $15,000 per recipient, the gift giver must pay the gift tax.
You avoid gift tax on your property by not gifting it to anyone else. The recipient of a gift has absolutely no tax obligation.
Federal gift taxes are not paid by the recipient. However, in the rare case where the donor does not have the resources to pay gift taxes they may owe, the IRS might try to recover some or all of the gift from the recipient. The donor may owe a gift tax depending on the size of the gift and depending on what other gifts the donor has given.
The recipient of a gift has absolutely no tax obligation under IRS code. Gifts are not considered income. § 102.
Gift taxes are owed by the party who gives the gift and not the recipient.
Federal gift taxes are not paid by the recipient. However, in the rare case where the donor does not have the resources to pay gift taxes they may owe, the IRS might try to recover some or all of the gift from the recipient. Since you posted this question in the Car Buying category: Some states may impose a sales tax on the Blue Book value of the car being transferred. This is a matter of state law and you should check with your DMV for details.
Yes, if the gift exceeds the gift-giver's annual exemption of $15,000 per recipient, the gift giver must pay the gift tax.
You avoid gift tax on your property by not gifting it to anyone else. The recipient of a gift has absolutely no tax obligation.
The person making a large gift (i.e., over $15,000 in 2012) would owe the tax.
No. Grandmother may give away up to $12,000 per recipient per year without incurring gift tax (which is just estate tax in advance). The recipient is never taxed on a gift.
I think you meant to ask whether "gifts" are liable to capital gains tax. If it is a true gift within the meaning of the tax law (and not some sort of disguised payment or barter), there is no capital gain tax at the time the gift is given. There may, however, be a gift tax (which is a different kind of tax) on the donor. If the recipient of the gift later disposes of the gift, that transaction may generate taxable capital gains for the recipient.
No. There is a limit of $12,000 annually for a single person to give away as gift. And if any tax is due on the gift, it is paid by person who makes the gift and not the recipient.
where do I file my federal tax form? I live in Montana and owe no money.
Form 709 is U.S. Gift (and Generation-Skipping Transfer) Tax Return. It isn't filed by the recipient of gifts because recipients don't generally pay gift tax. If a gift is subject to tax, it generally is taxable to the donor. The annual gift tax exclusion level is $12,000 per recipient for 2008 ($13,000 per recipient for 2009). File Form 709 if you give any gift that exceeds the exclusion level. For more information, go to www.irs.gov./formspubs for Publication 950: Introduction to Estate and Gift Taxes.