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Your estate pays gift tax when you die and your non-exempt gifts add up to more than the lifetime exemption amount (which in the U.S. is currently around $2m).
== == If you gave any one person gifts in 2006 that valued at more than $12,000, you must report the total gifts to the Internal Revenue Service and may have to pay tax on the gifts the year that it is done.
The person who receives your gift does not have to report the gift to the IRS or pay gift or income tax on its value. Gifts include money and property, including the use of property without expecting to receive something of equal value in return. If you sell something at less than its value or make an interest-free or reduced-interest loan, you may be making a gift. There are some exceptions to the tax rules on gifts. The following gifts do not count against the annual limit: * Tuition or Medical Expenses that you pay directly to an educational or medical institution for someone's benefit * Gifts to your Spouse * Gifts to a Political Organization for its use * Gifts to Charities If you are married, both you and your spouse can give separate gifts of up to the annual limit to the same person without making a taxable gift.
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Does the recipent have to pay gift tax when given a house?
No, the recipient NEVER pays gift tax. Gifts are not income and not taxable. However, the person GIVING you the gift may have to pay gift tax on the value of the house that exceeds the annual exclusion of $15,000. They may be better off gifting you a partial ownership over several years, where each part is worth less than $15,000. If the gift is from your spouse, there is no gift tax.
Do I have to pay gift tax on a gift to help pay for a house?
Under the U.S. Internal Revenue Code, gift tax is not counted on the first $11,000 per person per year (more or less, depending upon which year the gift was made).== == The tax is paid as a gift tax by the givor. (Although it has to be a gift , and some things like gifts by an employer to an employee are actually always considered payroll.)If you gave any one person gifts in 2006 that valued at more than $12,000, you must report the total gifts to the Internal Revenue Service and may have to pay tax on the gifts. The person who receives your gift does not have to report the gift to the IRS or pay gift or income tax on its value. Gifts include money and property, including the use of property without expecting to receive something of equal value in return. If you sell something at less than its value or make an interest-free or reduced-interest loan, you may be making a gift. There are some exceptions to the tax rules on gifts. The following gifts do not count against the annual limit: * Tuition or Medical Expenses that you pay directly to an educational or medical institution for someone's benefit * Gifts to your Spouse * Gifts to a Political Organization for its use * Gifts to Charities If you are married, both you and your spouse can give separate gifts of up to the annual limit to the same person without making a taxable gift. Now importantly in family situations...there may be a credit or exclusion available if there is ever an estate tax situation.
If a third party makes payments on a student loan or donates money to help someone pay off his or her student loan debt is the dontation tax-deductible?
No. That's considered a gift, not a charitable donation. You might actually be liable for a gift tax.
Does the recipient of a 12000 tax exempt gift pay taxes on the gift amount?
Your question says it's a tax exempt gift (for whatever reason you claim, I'll presume parent to child)...what do you think your answer should be? But presuming you were just tossing words around:The tax is paid as a gift tax by the givor. (Although it has to be a gift , and as noted, gifts by an employer to an employee are actually always considered payroll.)If you gave any one person gifts valued at more than $12,000, you must report the total gifts to the Internal Revenue Service and may have to pay tax on the gifts. The person who receives your gift does not have to report the gift to the IRS or pay gift or income tax on its value. Gifts include money and property, including the use of property without expecting to receive something of equal value in return. If you sell something at less than its value or make an interest-free or reduced-interest loan, you may be making a gift. There are some exceptions to the tax rules on gifts. The following gifts do not count against the annual limit: * Tuition or Medical Expenses that you pay directly to an educational or medical institution for someone's benefit * Gifts to your Spouse * Gifts to a Political Organization for its use * Gifts to Charities If you are married, both you and your spouse can give separate gifts of up to the annual limit to the same person without making a taxable gift.
You are twenty three years old and you are about to buy your first house How will your taxes be affected by your mother giving you the down payment for the house It will be between 30-40 thousand doll?
Your taxes will not be affected at all. (Well, you'll have to borrow less, so you'll pay less interest, so you'll get a smaller interest deduction.) However, if your mother gives gifts totally more than $13,000 to any individual in 2009, she needs to file a gift tax return, Form 709. The amount of her gift over the $13,000 exemption will be deducted from her lifetime gift tax allowance and her estate tax allowance. Once her lifetime gift tax allowance ($1,000,000) is used up, she must pay gift tax. If she is married, her husband could give you $13,000 of the gift in order to avoid using up part of the gift tax allowance. If you have any medical or tuition bills (not student loans), your mother could pay those directly to the medical service provider or school instead of giving you a gift and they would be exempt from the gift tax and not count against the $13,000 annual allowance. Then you could use the money you normally would have spent for these things towards the house.
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.
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.
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.
I was given a car is there a gift tax in Ohio?
There is a federal gift tax if someone gives you more than the $15,000 annual gift tax exemption, and they would need to file an IRS Form 709 and pay the tax.
