Comments on: What is the Gift Tax?

By: Not a tax professional

Not a tax professional — Tue, 05 Apr 2011 15:28:33 +0000

Confused TP et al. First, the giver, not the receiver is taxed on a gift over $13,000. The giver is the one that is supposedly trying to avoid inheritance tax. Gifts are not taxable income, so the receiver doesn’t have to pay any income tax.

Nancy, you can either spread the payments over 4 years or deduct the amount that is over $13k x nr of sibs from your $5M lifetime exclusion. Note the lifetime exclusion is $5M this year. It could be more or less in the future.

Although you are responsible for the tax, I would negotiate with sibs that you deduct the tax from their share if they insist on immediate payment. Put it in a safe investment, and give them their share plus interest annually until it’s paid out.

By: Jeff madden

Jeff madden — Sun, 03 Apr 2011 07:12:26 +0000

My co. sold 25.000.00 in co. stock to only 5others including me. I paid 25,000.00 for stock and sod it the next year.I made 65,000.00 but put some of it on home and fixups on my house to sell and to buy a new home where I WAS TRANSFERRED.iS THAT PART OF NO TAX INCREASES

By: A. Morgillo

A. Morgillo — Sat, 05 Mar 2011 11:40:29 +0000

My father passed away, My mother is still living. When dad passed he left the house in my name and my three sisters. Unfortunatley we had to put mom in a nursing home. We sold the house and put all the money in an account for mother to pay for all her care at the home. All our names are on the account. None of have received any of the money it all goes to mother. How do we file our taxes on this? Are we eligible for a medical exclusion? Or do each of us have to report it as income and file that way? Thank you A. Morgillo

By: Alice Leonard

Alice Leonard — Wed, 02 Mar 2011 05:59:47 +0000

Gifts under 13,000 per year are not taxed

By: Nancy

Nancy — Tue, 01 Mar 2011 21:44:52 +0000

I bought parents farm, I have to sell some land to pay siblings 43,000.00 each. I thought I pay capital gain, and they pay gift taxes. Could you explain who has to pay what?

Thank You

By: confused tax payer

confused tax payer — Tue, 01 Mar 2011 17:46:57 +0000

If the person giving the gift doesn’t have to pay taxes on it, then what about the person receiving the gift? Would the recipient have to pay taxes on a gift that falls below the $13,000 threshold?