Gift tax

From Wikicpa

A gift tax is a transfer tax imposed on the value of certain gifts.

In the United States the gift tax is imposed on the gratuitous transfer of monetary and non-monetary property, and is generally paid by the donor. In the U.S., the gift tax is governed by Chapter 12, Subtitle B of the Internal Revenue Code. The tax is imposed by section 2501 of the Code.

The treatment of a gift for purposes of the U.S. gift tax (the transfer tax) should not be confused with the treatment of gifts for other tax purposes. For example, for U.S. income tax purposes most gifts are excluded (under Internal Revenue Code section 102, from the gross income of the recipient, and thus are not taxed as income.

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