Federal Gift Tax?

[WizeOne]

Google as I might, I cannot find how Federal gift tax is computed. In otherwords does it have it's own rate schedule like Estate tax or is it treated like income tax.

I do know that the giver is ultimately on the hook to pay the tax and as of 2009 there is a $13k exclusion, but that is all I was able to find on the subject.

As an aside, I am really shocked that the Feds do not treat a gift as imputed income to the receiver as well as what they rob from the giver.

 

[BuzzStPoint]

Re: Federal Gift Tax?

I'm not sure how the Gift tax works either.
But this should point you in the right direction.
I was reading the information links and I'm assuming you can fill out the paperwork to find the tax.

http://www.irs.gov/businesses/small/article/0,,id=164872,00.html

 

[WizeOne]

Re: Federal Gift Tax?

I'm not sure how the Gift tax works either.
But this should point you in the right direction.
I was reading the information links and I'm assuming you can fill out the paperwork to find the tax.

http://www.irs.gov/businesses/small/article/0,,id=164872,00.html

Yeah, I crawled all over that site. If anyplace would have the $$$$ info you'd think they would but it never even comes up in any of their FAQ's.

At this point my question is only hypothetical so I do not have an exact amount.

 

[Navy Jr.]

Re: Federal Gift Tax?

I think its IRS form 709:

http://www.irs.gov/instructions/i709/index.html

or for PDF version:
http://www.irs.gov/pub/irs-pdf/f709.pdf

-Ken

 

[slia67]

Re: Federal Gift Tax?

Check with your CPA.

As a side note,... If you and your wife were to give your son and daughter-in-law gifts, but each wrote a seperate check to each person, it is viewed by the IRS as 4 different gifts and could avoid the gift tax as long as there is a paper trail.

You could again do the same thing for your other children too. Again check with your CPA.