Other Tax Issues of Interest
Gift Tax
The gift tax applies to the transfer by gift of any property. You
make a gift if you give property (including money), or the use of or income from property,
without expecting to receive something of at least equal value in return. If you sell
something at less than its full value or if you make an interest-free or reduced interest
loan, you may be making a gift.
The general rule is that any gift is a taxable gift. However, there
are many exceptions to this rule.
Generally, the following gifts are not taxable gifts:
1. The first $10,000 you give someone during a calendar year (the
annual exclusion).
2. Tuition or medical expenses you pay for someone (the tuition and educational
exclusions).
3. Gifts to your spouse if your spouse is a U.S. citizen.
4. Gifts to a political organization for its use.
5. Gifts to charities if you transfer your total interest in the property or
gift to a qualified charity.
Gift
Splitting
Applying
the Unified Credit to Gift Tax
Filing
a Gift Tax Return
Form
709
Important References
Publication
950
Estate and Gift Taxes
Form
709
United States Gift (and Generation-Skipping Transfer) Tax Return
Instructions
for Form 709