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Gifting when alive you are taxed at 15k+ or so. Gifting when dead you aren't taxed until 5m or 10m for married. The GOP tax plan doubles that to 10/20m and the
by drawkbox 9y ago
Gifting when alive you are taxed at 15k+ or so.
Gifting when dead you aren't taxed until 5m or 10m for married. The GOP tax plan doubles that to 10/20m and then removes it after 6 years.
The estate tax was already a huge benefit when compared to the gift tax. What would be nice is if they could up the amount on the gift tax rate if they aren't going to collect any tax on gifting after death (inheritance). This could free up money that will only be in an estate and not used for years maybe even decades.
When you compare the gift tax when alive to the gift tax after death (the estate tax) it is already a massive benefit.
- tssva 9y agoThere is a lifetime $5.49 million exemption from the gift tax. Gifts above $14k are taxed. If you gave me $30k this year, you would not have to pay any taxes on it but your $5.49 million lifetime exemption would be reduced by $16k.
- drawkbox 9y agoWow never knew that. I always thought the person receiving the gift had to pay taxes on any amount above the gift tax rate per year if the tax wasn't paid by the giver i.e. 14k currently. Basically then any money you receive or earn is taxable except loans and gifts up to the gift tax limit, all other money movement is taxed. Of course winnings are still taxed at normal rates because that is income not gifted per se, I guess I was conflating the two. Example: If you win a car you owe taxes on the whole thing. So essentially it is the same limit as the estate tax, so I wonder if that also doubles and also goes away in the tax bill.