how much is the gift tax on 1 million dollars???

Answer 1

Steven F is correct. If the $1 million dollars is the only gift the person has ever made - there will be no tax due. Is this an actual situation? It would be unusual for an individual to make 1 $1 million dollar gift and no others. Someone that can afford million dollar gifts usually has other gift activity! :-)

If the person has ALREADY used their lifetime unified credit the tax due will be $341,120. Here is the computation - Make a $1 million gift and reduce by your annual exclusion this year of $12,000 to get to a taxable gift of $988,000. (there are additional opportunities to reduce gift if you are married - you can "gift split" and use two annual exclusions). The tax due on $988K is $248,300 plus 39% on the amount over $750K ($238,000). $238,000 times 39% is $92,820. Add this to the $248300 to get $341,120.

Answer 2

1. Federal gift tax, if due, is paid by the giver, not the receiver.
2. The first $12,000 of gift from any one individual to any other individual in a given year is excluded from gift tax.\
3. The Unified Credit of $345,800 eliminates the tax of the first $1,000,000 of taxable gifts made by an individual over their lifetime.

For more information, See the IRS publication linked below.

Answer 3

Our government is such a leech on society. Death tax, inheritance tax, gift tax, whats next a breathing tax?

Answer 4

There's a good website to make an initial estimation: http://www.talkmoney.com. It will walk you through the necessary steps to calculate the tax in your situation.

Answer 5

Somewhere around 50% ,,,,,,,,,,,,,,,,,,

Answer 6

Parents can give $1 million gift to each child before federal inheritance tax is due.