 |
Definition of 'Gift Tax'
A federal tax applied to an individual giving anything of value to another person. For something to be considered a gift, the receiving party cannot pay the giver full value for the gift, but may pay an amount less than its full value. It is the giver of the gift who is required to pay the gift tax. The receiver of the gift may pay the gift tax, or a percentage of it, on the giver's behalf in the event that the giver has exceeded his/her annual personal gift tax deduction limit.
|
 |
Investopedia explains 'Gift Tax'
The following are generally excluded from gift tax:
1. Gifts to one's spouse.
2. Gifts to a political organization for use by the political organization.
3. Gifts that are valued at less than the annual gift tax exclusion for a given year.
4. Medical and educational expenses - payments made by a donor to a person or organization such as a college, doctor or hospital.
As the regulations applied to gift taxes are very complicated, it is best to check with your respective tax authorities if you have given anyone a gift valued at more than $13,000 for 2011 and 2012.
|
-
There are several things to consider when it comes to this type of charitable giving. Make sure you're well informed.
Read More »
-
Find out how to help the ones you love without hurting yourself.
Read More »
-
Find out why money can sometimes be the perfect gift.
Read More »
-
-
Learn about a strategy that could help you reduce taxes, diversify your portfolio and generate income.
Read More »
-
With some preparation, you can save your heirs from paying a hefty estate tax. Here are some tips.
Read More »
-
Read More »
|
|
