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> I don't think it's a gift tax, but ordinary income tax. Is it simply counted on top of (added to) your existing income, and therefore progressive? If I'm un
by SkeuomorphicBee 4y ago
> I don't think it's a gift tax, but ordinary income tax.
Is it simply counted on top of (added to) your existing income, and therefore progressive?
If I'm unemployed, with no income at all, would I pay very little to no tax on such a gift? Or gifts are a special case with a separate rate?
- chiph 4y agoYes, the normal progressive tax brackets apply. So if Oprah gives you a car worth $40k, and you have no other income that year, you will take the standard deduction and pay 12% on what's left. Don't forget to pay your state income tax and also the DMV to title & register the car. Getting free stuff isn't cheap!