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Max Said:Are we subject to paying gift taxes?
We Answered:Since it is part of a divorce decree, then it should not be treated as a gift, unless the divorce decree says otherwise.
If he lived in the home for at least 2 of the last 5 years, then any gain from the sale of the home would be subject to a $250,000 exclusion, because it would be the sale of a personal residence. If the home was sold for less than the original cost ya'll paid for it, then there is absolutely no gain or income to report, and the IRS will not allow you or him to report the loss.
Velma Said:If my father adds my name to the deed of his house, is that considered a gift and subject to taxation?
We Answered:Ask a lawyer this one. In my state if his name is still on it the house wouldn't be considered a gift but I don't know about Nevada.
Fred Said:Are you suppossed to give a gift for both the bridal shower and the wedding?
We Answered:Showers are given with the express purpose of "showering" the bride with gifts. Hence you must bring a gift when you attend a shower. But, the gifts are supposed to take the place of "dowry" in order to provide the bride with all those small everyday necessities required when setting up housekeeping: things like tea-towels, potato peelers, wooden spoons, dish racks -- NOT the sort of things that one puts on a registry. The people invited to a shower are supposed to be the close intimate friends who are known to actually *want* to help the bride stock her home in this way.
Wedding gifts however are optional. No one is ever obliged to give a gift (if you *were*, they would be considered a form of taxation or tribute, not a gift: gifts by definition are voluntary.) You give a gift if you wish to, and you give a gift that you can afford with a willing and generous heart.You don't have to buy off the registry. Properly handled, a registry is a planning tool that the bride uses to set up her household, and the fact that it is available as a guideline to guests is secondary. Reading the registry will give you insight to to her tastes and to the sizes, colours and patterns of linen, crystal, china and silver that she has chosen. Use that insight to guide your gift-giving if you wish, but you do not have to limit yourself to the items that she has already planned to acquire.
Freddie Said:why are gift cards not taxable?
We Answered:I think the main reason is to avoid double taxation.
For example, if you purchased a gift card for $100, you would pay just $100. When you redeem the gift card, you'll need to pay the normal taxes for the merchandise purchased.
If it were taxed when the gift card was purchased and when the gift card is redeemed, they would be taxing the same $100 twice.
Bryan Said:If I had a son and I gave him a gift of $1 million, would it be subject to taxation?
We Answered:Yes, you can only give a certain amount of money per year, according to the IRS, for that gift to be tax free. A couple of years ago, that amount was $10,000. I'm pretty sure it has gone up, but not much. You would probably serve yourself (and your son) well to talk to a CPA or a tax attorney. There may be other ways you can shelter your gift from taxes - for example, by setting up a trust for your son's health, maintenance, and education.
Agnes Said:Hello! I have paid off loans on 2 flats . To avoid taxation, need to transfer 1 flat to my mother.Gift tax ?
We Answered:No gift tax on gift between close relatives. You can gift it to your mother without any worry. By this way you can avoid tax on one flat rental income. By way of gift, your mother will become the owner of the property. She can sell it or can gift it to any one. Think about further / future complications.
Sam Said:What is the maximum amount a person can give another as a gift without tax.?
We Answered:I disagree with the previous answers. There is no gift tax in the UK and therefore there is no tax liability.
The donor's estate may be liable to Inheritance Tax if s/he dies within 7 years of making the gift.