2007-04-02 09:18:05 · 5 answers · asked by Jonnie G 1 in Business & Finance ➔ Taxes ➔ United States
Only if the gift is over $12,000. Then you'd have to file a gift tax return, and possibly pay a gift tax.
2007-04-02 11:43:43 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
You pay income taxes on the capital gains. If you then give the net proceeds away as a gift, there is no additional income tax due from anyone; giftor or recipient. However as Bostonian says, if you give over $12k to any one person a gift tax liability appears on the horizon.
The $12k limit is per person. However if the proceeds are community property of you and you spouse, you each can give $12k so the maximum gift to any one person would be $24k before gift tax becomes an issue.
2007-04-02 17:11:17 · answer #2 · answered by zudmelrose 4 · 1⤊ 0⤋
It could well be! Any gift of $12,000 or more to any one recipient in any one tax year can trigger a Gift Tax liability for you.
2007-04-02 16:21:25 · answer #3 · answered by Bostonian In MO 7 · 2⤊ 0⤋
yes
2007-04-02 16:25:29 · answer #4 · answered by Anonymous · 0⤊ 1⤋
Yes.
That's why it makes more sense to give the appreciated asset rather than sell the asset and give the proceeds.
2007-04-02 16:22:28 · answer #5 · answered by Box815 3 · 1⤊ 1⤋