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The general rule is: 45%, but there is much more. The U.S. Federal tax rates for gifts are on the same tax rate schedule as the estate tax. If the gift is a "present interest" gift (they can use it or benefit from it today) then each person giving the gift has, in 2009, a $13,000 exclusion from tax. Above that each person has a $1,000,000 lifetime exemption from gift tax but is required to file a gift tax return to keep track of that lifetime exemption. Gifts above that are currently being taxed at 45%. So if you put $1,500,000 in a trust for your friends and relatives (not your spouse) and they have no rights to the trust for awhile and you have never gifted over the annual exclusion before, the first $1,000,000 is not taxed and the $500,000 is taxed at 45%. The person giving the gift pays the tax. As with all tax law there are other circumstances that can make the general rule different than stated above. For instance, you can force the recipient to pay the tax.
What else can I help you with?
What is the federal estate tax rate?
For 2011, the federal estate tax exemption will be $5 million and the estate tax rate for estates valued over this amount will be 35%. The estate tax has also become unified with federal gift and generation-skipping transfer taxes such that in 2011 the lifetime gift tax exemption and generation-skipping transfer tax exemption will be $5 million each and the tax rate for both of these taxes will also be 35%. There is NO federal level inheritance tax.
What is the current inheritance tax rate?
For 2011, the federal estate tax exemption will be $5 million and the estate tax rate for estates valued over this amount will be 35%. The estate tax has also become unified with federal gift and generation-skipping transfer taxes such that in 2011 the lifetime gift tax exemption and generation-skipping transfer tax exemption will be $5 million each and the tax rate for both of these taxes will also be 35%. There is NO federal level inheritance tax.
What is the tax percentage for gift tax?
The tax percentage for the gift tax is generally 45 percent.
What is the gift tax for 200000dollars?
90000 dollars is the gift tax of a gift of 200000 dollars.
Does the receiver have to pay gift tax on the gift they received?
In most cases, the receiver does not have to pay gift tax on the gift they received. The responsibility for paying gift tax typically falls on the person giving the gift.
What is sales tax on car if the car is a gift?
gift = no sales tax
Is Gift tax is a direct tax?
no....
How do you find the tax rate if you have the pre tax and after tax profit?
After Tax Profit = Pretax Profit * (1 - Tax Rate) Solve for Tax Rate Tax Rate = 1 - (After Tax Profit/Pretax Profit)
Who pays tax on 20000 gift to another person?
Gift tax, when applicable, is paid by the one giving the gift,
What is the difference between an estate tax and gift tax?
Estate has to do with when someone dies. Gift tax has to do with when someone makes a gift of larger than a certain value.
Does the receiver of a gift have to pay tax on it?
In most cases, the receiver of a gift does not have to pay tax on it. The giver is usually responsible for any gift tax that may apply.
Are gift cards tax deductible for a business?
No, gift cards are not tax deductible for a business.
