0
If you give someone more than $15,000 per annum (as of 2012), but you can deduct that tax obligation from your lifetime gift tax exclusion.
Wiki User
∙ 11y ago
Add your answer:
Earn +20 pts
Who pays tax on 20000 gift to another person?
Gift tax, when applicable, is paid by the one giving the gift,
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.
Why do you pay a gift tax when you receive a bonus from your employer?
It's not a "gift tax", because it's not really a "gift" legally speaking. You do pay income taxes on it, just as you would on any other income.There is such a thing as a gift tax, but it's usually paid by the person giving the gift, not the person who receives it. Yes, this applies even though the gift is presumably coming out of money on which income tax has already been paid. The purpose of the gift tax is mainly to keep rich people from doing an end run around an estate tax. If you die and leave Stately Wayne Manor to your son Bruce, there's (historically) going to be an estate tax due; the reason for the gift tax is so that you can't just hand Bruce the keys minutes before you die and say "it was a gift, not an inheritance, so no tax for you, Mr. Uncle Sam."
Is a gift tax deductible?
No. In fact there may be a tax - the gift tax - that needs to be paid by the one giving it...although if done properly it can normally be easily avoided.However, in the case of property whose value at the time the gift is given exceeds the donor's basis, a portion of the gift tax paid can be used to increase the basis of the property in the recipient's hands. I won't go into the rules for calculating the how much of the gift tax is added to the basis, it's rather complicated. But increasing the basis does have the effect of decreasing the amount of taxable income the one you give it to will have when they sell the property.
Is there any forms to fill out for gift tax free to you son?
No, your gift must simply be less than the annual tax-free amount, which is $15,000 per year in 2012.
What is the gift tax on a vehicle in California?
Tax should be applied on a vehicle that is gifted in California depending on the cost. For example the average gift tax is 14,000 in which taxes must be paid.
Who pays tax on 20000 gift to another person?
Gift tax, when applicable, is paid by the one giving the gift,
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.
Who paid tax for tendulkar's farrari?
The Indian Government - It was a gift
Do you pay Tax on car gift in Ohio?
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.
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.
What kind of tax must be paid by the person who owes the tax?
direct a+
What type of tax must be the paid by the person who owes the tax?
loveing it
What kind of tax must be paid by the person who owed the tax?
direct a+
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.
How do you claim for foreign tax credit?
The tax must be imposed on you You must have paid or accrued the tax The tax must be the legal and actual foreign tax liability The tax must be an income tax (or a tax in lieu of an income tax) Tax Must Be Imposed on You You must use form 1116 to file.
Why do you pay a gift tax when you receive a bonus from your employer?
It's not a "gift tax", because it's not really a "gift" legally speaking. You do pay income taxes on it, just as you would on any other income.There is such a thing as a gift tax, but it's usually paid by the person giving the gift, not the person who receives it. Yes, this applies even though the gift is presumably coming out of money on which income tax has already been paid. The purpose of the gift tax is mainly to keep rich people from doing an end run around an estate tax. If you die and leave Stately Wayne Manor to your son Bruce, there's (historically) going to be an estate tax due; the reason for the gift tax is so that you can't just hand Bruce the keys minutes before you die and say "it was a gift, not an inheritance, so no tax for you, Mr. Uncle Sam."
