Gift tax Essay

This essay has a total of 473 words and 5 pages.


gift tax








Gift Tax

One of the taxes that we went over in class was
gift taxes. This is a tax that is implied when
property, personal items, or money with a value of over
10,000 dollars is given from one person to another.
There are a few exceptions to this law such as giving to
non-prophit organizations or the donation is going
towards an education or tuition. I feel that this is a
good tax to have because it will keep greedy people from
transferring their money around to evade paying taxes on
it.

Gift tax is will make sure that all citizens pay
their fair amount of taxes which is decided by their
income. This tax is collected and responsible to the
donor. This person must file a gift - tax return with
the Internal Revenue Service. There are little ways to
extend the amount of a gift given but there is no way
around the tax that there is to be paid. One of the
tricks is to have a man and his wife donate because any

gift coming from a marriage can equal 20,000 dollars,
10,000 from the husband and 10,000 from the wife.
Medical, educational, non - prophit organization
donations, gifts to charities, and gifts to a spouse are
tax exempt.

Some examples of gifts that are not taxable are
giving your nephew 9,000 dollars for a present because
it is not over 10,000 dollars. Also paying 15,000
dollars for your friend to go to college is not taxable
because it is for a tuition. Now if you gave your son
25,000 dollars the first 10,000 dollars are tax exempt
but you have to pay tax on the other 15,000 dollars.
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