Question

In which of the following situations would someone have to pay a gift tax?
A. a relative dies and leaves you $13,000 in the will
B. your cousin gives you a car worth $1,700
C. your grandmother gives you $13,000 toward college
D. your cousin gets a job paying @32,000 a year
I think its A
@whpalmer4 @iambatman

Answer 1

No, you don't pay gift tax on an inheritance. The estate may have to pay tax before you get any money, but that's a tax on the estate, not on the gift.

Your cousin getting a job doesn't cause you to pay a gift tax, either.

Your cousin giving you a car might cause him/her to pay gift tax, if the value of the car is great enough. Also, your grandmother giving you money for college might cause her to pay gift tax, if the gift is large enough. I don't know what the threshold is at the moment, but if anyone here is paying gift tax, it's grandma.

Answer 2

At one point the cutoff was $10,000 per person each year; gifts above that either incurred a gift tax, or the giver had to file a gift tax return and use up some of their lifetime gift credit. The amount may have gone up, but I'm sure it hasn't gone down!

Answer 3

I'll just go with C. I'll let you know if it was right

Answer 4

@Opcode