IRS
$12000.00
2006-08-22 16:24:03 · 5 answers · asked by rcrowleyjr 1 in Business & Finance ➔ Taxes ➔ United States
The gift tax exclusion generally applies to the person that receives the gift. However it has an impact with regard to estate taxes. In 2005 the exclusion was $11,000 for a single person and $22,000 for a married couple jointly giving a gift. This is a oversimplification by if that single person gave $15,000 and dies with an estate subject to estate tax they would pay estate tax on $4,000 which exceed the exclusion amount in the year of death
2006-08-22 17:58:19 · answer #1 · answered by ? 6 · 0⤊ 1⤋
The gift tax exclusion applies to the person giving the gift. The person receiving the gift does not pay a gift tax.
The person giving the gift "can gift" up to the annual exclusion amount each year. If the amount of the gift exceeds the annual exclusion, then the gift tax return should be filed. However, if the gift exceeds the annual exclusion, then the amount of the gift can be applied against the lifetime exclusion amount, without any gift tax being owed.
2006-08-26 12:00:23 · answer #2 · answered by Taxplan4u 1 · 0⤊ 0⤋
It is a gift given by any individual to any other individual, and it applies annually. So, for example, two parents can give $12,000 each to three children each year for a total of $72,000.
2006-08-23 01:39:28 · answer #3 · answered by NotEasilyFooled 5 · 0⤊ 0⤋
Gifts given to anybody - doesn't have to be a relative.
2006-08-22 18:39:18 · answer #4 · answered by Judy 7 · 0⤊ 0⤋
You can give it to anyone, and yes, it's $12,000 for 2006.
2006-08-26 16:23:45 · answer #5 · answered by Pearlie 2 · 0⤊ 0⤋