What was the annual gift tax exclusion for 2015?

What was the annual gift tax exclusion for 2015?

$14,000
The Internal Revenue Service announced the 2015 estate and gift tax limits today, and the federal estate tax exemption rises to $5.43 million per person, and the annual gift exclusion amount stays at $14,000.

What was the gift tax rate in 2016?

The top rate for gifts and generation- skipping transfers remains at 40%. See Table for Computing Gift Tax. The basic credit amount for 2016 is $2,125,800. See Table of Basic Exclusion and Credit Amounts.

What was the standard deduction in 2015?

Standard Deduction and Personal Exemption The standard deduction will increase by $100 from $6,200 to $6,300 for singles (Table 2). For married couples filing jointly, it will increase by $200 from $12,400 to $12,600. The personal exemption for 2015 be $4,000.

What states have a gift tax?

The federal gift tax is one of the most misunderstood and often ignored taxes assessed by the federal government. Also, Connecticut and Minnesota are the only states that currently collect a gift tax at the state level.

Do I have to pay taxes on a gift?

Most circumstances do not require you to pay a tax on any gift of money received, as the giver is one responsible for the tax. If the giver does not pay the tax, however, you may be held liable for it.

What is the current federal gift tax rate?

Gift Tax Rate. The gift tax rate starts at 18 percent and ramps up to a maximum of 40 percent for taxable gifts in excess of $1 million. The blended tax rate on taxable gifts of $1 million is 34.58 percent, meaning if you make taxable gifts of $1 million, you’ll owe gift tax of $345,800. Gift amounts over $1 million are taxed at the 40 percent rate.

How is gift tax calculated?

Federal gift taxes, as well as inheritance taxes, are calculated much in the same fashion as typical property taxes or in some cases, unearned income taxes. First, the property or gift amount is assessed and given a value according to the current fair market rates. In the event of monetary gifts, the value of the gift is the total amount given.