MsTabbyKats Posted February 20, 2015 Report Posted February 20, 2015 I've never done, nor am planning to do gift taxes. Yet a situation arises...and I have a question that is probably simple but I can't figure it out in my readings. Father gives son something worth $100,000 as a gift (let's say an apt). Father can exclude $14,000 Does father pay tax now on $86,000....or is the $86,000 rolled up into some account that is used after father dies? Father is not rich...no big estate here. Thanks in advance. Quote
jklcpa Posted February 20, 2015 Report Posted February 20, 2015 The gift tax return will show the value of the gift, the $14K exclusion, and the portion that is taxable. The page 1 of the form 709 will calculate the tax and will also allow you to apply the unified credit against the tax and he won't pay any gift tax on this. There is a lifetime limit on the unified credit that is tied to the estate tax, but in this case it sounds like that isn't in the realm of possibilities that the credit would be used up at this point. Not sure if there is any state gift tax in NY. Quote
michaelmars Posted February 21, 2015 Report Posted February 21, 2015 NO Gift tax in NY anymore 1 Quote
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