gift tax

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  • noun

Words related to gift tax

a tax imposed on transfers of property by gift during the lifetime of the giver

References in periodicals archive ?
Since Betty did not have the financial resources to pay the tax from her separate property, Willet gave her the money to pay the gift taxes in the form of two checks totaling $1,415,732, which she deposited in her own account.
Also, gift taxes would be collected over a multiple-year period rather than every calendar year as under the current system, they added.
This ruling, combined with the general inadvisability of paying gift taxes in light of possible permanent estate tax repeal, may increase the popularity of GRATs when doing lifetime estate planning.
Assuming the client obtains a qualified appraisal substantiating discounts of about 35% for lack of marketability and 6% for the minority interest, if the gifts had been made before the recent market decline, the total gift taxes would have been $98,284, after using the clients' full annual exclusions ($20,000 per child) and their full lifetime gift tax exemptions ($675,000 for each spouse).
On the McCords' 1996 gift tax returns, the gifts' taxable values were based on the gross FMV transferred to the nonexempt donees ($6,910,933), reduced by the total Federal gift taxes payable and the actuarially determined present value of their obligations for additional estate taxes under Sec.
Estate planners most often focus on minimizing estate and gift taxes when dealing with their clients' situations.
The IDGT can freeze the value of an asset for estate planning purposes, while effectively transferring funds out of the estate free of gift taxes.
The IRS approved a new way for grandparents or terminally ill taxpayers with large estates to presently reduce the size of their estates without having to pay gift taxes (PLR 199941013).
19) Part II, below, examines five more strategies for reducing estate and gift taxes.
Following her death, the IRS audited the estate and determined the gifts were not of a present interest but, instead, of a future interest, which meant additional gift taxes were due.
The resultant gift tax is then offset by the unified credit (assuming it has not been previously used) and no gift taxes are due with the returns.
The grantors can use the QPRT to save on gift taxes in transferring the residence to beneficiaries, and as long as the "sale" of the residence to the beneficiaries (via the QPRT) does not exceed $500,000 in total gain, no capital gain tax results.
Senator Jon Kyl (R-AZ) is leading the legislative charge to repeal the estate and gift taxes.
transfer tax system, including a gradual increase in the unified credit that eventually will enable each taxpayer to shield up to $1 million from estate and gift taxes.
The limitation period for assessing gift taxes against T and H for their 1987 gifts ended on April 15, 1991.