February 17, 2012

Gift Tax

The first $13,000 of gifts of a present interest made by a donor during calendar year 2011 to each donee are not included in the total amount of the donor's taxable gifts during that year.  Therefore, these amounts are neither taxed nor do they use up any of the donor's lifetime gift tax applicable credit amount.  Also, spouses who consent to split their gifts may transfer a total of $26,000 per donee in 2011, free of gift and GST tax.

The gift tax rate for 2011 is 35 percent.

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