Gifts - Excess of tax free amount
Answer:
The first $14,000 ($13,000 in 2012) are tax free. The taxes start at 18% and increase to 35%.
The person who makes the gift known as the donor is responsible for paying taxes on the gift on excess of the current years allowance.
If the donor does not pay the tax, the recipient must. If the recipient cannot or does not pay the tax, the IRS can seize the property and sell it to pay the tax.
Gifts are taxed at the same rate as estates.
The person who makes the gift known as the donor is responsible for paying taxes on the gift on excess of the current years allowance.
If the donor does not pay the tax, the recipient must. If the recipient cannot or does not pay the tax, the IRS can seize the property and sell it to pay the tax.
Gifts are taxed at the same rate as estates.
