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05-28-2008, 03:32 PM
| | Junior Member | | Join Date: May 2008
Posts: 1
| |  State Gift Taxes?
Hello, I am in Texas and have a question about gift taxes. I understand that I do not owe a federal gift tax until I've given $12,000 worth of stuff. But I also know that some states have their own gift taxes. I have not had much luck finding out about the specifics however.
Does Texas have its own gift tax, and if so, how do I know if I owe it?
I'm giving my vehicle to my little sister for graduation. I paid off roughly $4700, and it's worth slightly less by the Kelly Blue Book. So the gift is not even worth $5,000. Do I need to pay a gift tax? If so, would it be better for me to charge her a small amount instead of gifting it? I am a recent college grad and I can't really afford to give this away if I have to pay more to do it! I already had to pay off the auto loan.
Please advise. |
05-28-2008, 04:13 PM
| | Senior Member | | Join Date: Feb 2007
Posts: 8,261
| | | No actually, you don't have to FILE a gift tax return until you give $12,000 in any particular year. You don't OWE any gift tax until you give away more than a $1 Million to any particular person over your lifetime (over and above the $12K exclusion).
Don't think there is any sort of gift tax in Texas. |
05-28-2008, 06:58 PM
| | Senior Member | | Join Date: May 2004
Posts: 41,394
| | Quote:
Originally Posted by FlyingRon  No actually, you don't have to FILE a gift tax return until you give $12,000 in any particular year. You don't OWE any gift tax until you give away more than a $1 Million to any particular person over your lifetime (over and above the $12K exclusion).
Don't think there is any sort of gift tax in Texas. | And I will add that its 12,000 to ONE person. You can gift 12,000 to 100 people in a single year and still not have to file a gift tax return.
However, the 1 million lifetime exclusion applies to all gifting...not just gifting to one person.
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05-28-2008, 07:13 PM
| | Senior Member | | Join Date: Jun 2005
Posts: 2,425
| | Quote:
Originally Posted by LdiJ And I will add that its 12,000 to ONE person. You can gift 12,000 to 100 people in a single year and still not have to file a gift tax return.
However, the 1 million lifetime exclusion applies to all gifting...not just gifting to one person. | ??? $12,000 x 100 = 1,200,000 ... & you say no gift tax,
yet you say after 1,000,000 there is gift tax due ??! (1mil exclusion). |
05-28-2008, 07:24 PM
| | Senior Member | | Join Date: Sep 2004
Posts: 2,992
| | Quote:
Originally Posted by garrula lingua ??? $12,000 x 100 = 1,200,000 ... & you say no gift tax,
yet you say after 1,000,000 there is gift tax due ??! (1mil exclusion). | A slip of the fingers by LdiJ, I think. Quote: |
However, the 1 million lifetime exclusion applies to all [reportable (?)] gifting....
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