What is the taxation laws for gift taxes for those who reside in the state of Minnesota? It is my understanding that any gift in the amount of 11,000.00 or less is not taxable income. Is that correct? If you know of a website that specifically answers this question could you provide the website? Thanks!
2007-02-01 04:48:00 · 3 answers · asked by Pam E 1 in Business & Finance ➔ Taxes ➔ United States
The limit for the annual excludable gift is $12,000 per person. If the gift is $12,000 that you gave someone you don't even have to file a gift return.
The only difference in my answer would be if you gave a gift of property that netted to a value of $12,000 after applying a discount. In this case you would probably want to file to start the three year statute of limitations running on the gift.
2007-02-01 05:04:37 · answer #1 · answered by waggy_33 6 · 0⤊ 0⤋
The gift tax is not an income tax. It only comes into play if you gift over $11,000 in a calender year to an individual. If you are married, you and your spouse can gift $22,000 to one person. If you go over that amount, there is a form to fill in for the IRS. Any amount over $11,000 goes against the unified tax credit amount. If the combined yearly amounts over $11,000 add up to exceed the unified tax credit amount, this year it's 2 million but it changes, then you would have to pay a taxes on the amount over.
Not sure about Minnesota state rules.
Hope this helps.
2007-02-01 04:57:07 · answer #2 · answered by Father Knows Best 3 · 0⤊ 0⤋
Wow, what a deal! there is not any tax to the recipient. With quantities like that being given to diverse human beings, the gifter may be to blame for present taxes. If somebody has that style of money to grant away, i could anticipate they already have an accountant - he or she could ask the accountant what the tax implications are.
2016-11-23 20:33:02 · answer #3 · answered by dunworth 4 · 0⤊ 0⤋