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Ct. Gift tax

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boostm3

Member
What is the name of your state (only U.S. law)? Ct.

In this scenario, Donor moved from Ma. to Ct. on 7/1/11. She gifted a donee $13k cash on 6/15/11, prior to her move to Ct, and then transferred title of her car, worth about $10k, to same donee in Sept, 2011, ie, after her move to ct.


Question is: since the $13k cash gift was made while she was living in Ma., can $10k car title transfer fit within the $13k annual Ct state tax exemption, thereby, requiring a Federal gift tax 706/709 form be filed, but not a Ct one?What is the name of your state (only U.S. law)?
 


LdiJ

Senior Member
What is the name of your state (only U.S. law)? Ct.

In this scenario, Donor moved from Ma. to Ct. on 7/1/11. She gifted a donee $13k cash on 6/15/11, prior to her move to Ct, and then transferred title of her car, worth about $10k, to same donee in Sept, 2011, ie, after her move to ct.


Question is: since the $13k cash gift was made while she was living in Ma., can $10k car title transfer fit within the $13k annual Ct state tax exemption, thereby, requiring a Federal gift tax 706/709 form be filed, but not a Ct one?What is the name of your state (only U.S. law)?
What happened while she was living in MA, would have no effect on CT.
 

boostm3

Member
What happened while she was living in MA, would have no effect on CT.
Im not sure whether you are saying that because the 13k cash gift was given when donor lived in MA, the $10k valued car transfer in CT would not require filing CT gift tax form because its under the $13k limit, or that it would require it??
 

LdiJ

Senior Member
Im not sure whether you are saying that because the 13k cash gift was given when donor lived in MA, the $10k valued car transfer in CT would not require filing CT gift tax form because its under the $13k limit, or that it would require it??
What I am saying is that the 13k gift would fall under MA state law, and the 10k transfer of the car would fall under CT state law. They are two completely separate issues as far as the states are concerned.

However, both of them are federal issues.
 

boostm3

Member
What I am saying is that the 13k gift would fall under MA state law, and the 10k transfer of the car would fall under CT state law. They are two completely separate issues as far as the states are concerned.

However, both of them are federal issues.
Meaning, that the car in this example should be declared on the federal gift tax return, but doesnt have to be on the Ct. gift tax return because in Ct, its under the $13k annual limit, regardless of the $13k gift already given in Ma?! BTW, there is no state law in Ma that governs this because there is no gift tax in Ma!
 

tranquility

Senior Member
This is an excellent question because of the way the state form instructions use the language.

But, it would require some time in research with the actual statutes and, perhaps, some case law to be sure. While it is extraordinarily likely we just divide resident and non-resident at a certain date and then compare the gifts against the definition of a CT gift for the status on the date given, they could have made such a rule clear. Even on a couple of readings, it is not so clear.
 

boostm3

Member
This is an excellent question because of the way the state form instructions use the language.

But, it would require some time in research with the actual statutes and, perhaps, some case law to be sure. While it is extraordinarily likely we just divide resident and non-resident at a certain date and then compare the gifts against the definition of a CT gift for the status on the date given, they could have made such a rule clear. Even on a couple of readings, it is not so clear.
Yea, the language is a little hairy. I did find this from the instructions, but Im not even sure this is all that clear:

"For Connecticut gift tax purposes, the
same first $13,000 of gifts to a donee during the calendar
year of a present interest in property that was excluded for
federal gift tax purposes is excluded from the total amount of
gifts, but only if that same first $13,000 of gifts to the donee
is gifts to which the Connecticut gift tax applies
."

So, then, since the first $13k in my example was gifted prior to establising ct residency, it fails the last test given above... Meaning, only the amount gifted in ct up to $13k is excluded.. I think.. Not all that sure, really, but I will likely use the ct residency date and anything gifted prior will NOT be taxable to ct and therefore, not be used to eat up the exclusion.
 

LdiJ

Senior Member
Meaning, that the car in this example should be declared on the federal gift tax return, but doesnt have to be on the Ct. gift tax return because in Ct, its under the $13k annual limit, regardless of the $13k gift already given in Ma?! BTW, there is no state law in Ma that governs this because there is no gift tax in Ma!
I cannot answer that question as I don't practice in CT therefore I am not familiar with CT state tax law. See Tranq's post above.
 

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