Q:

What is the current rate for federal gift tax?

A:

Quick Answer

As of 2015, the current federal gift tax rate is 40 percent, according to Nolo. While most ordinary gifts are not taxable, very large gifts may be subject to the gift tax liability.

Continue Reading

Full Answer

A gift is a transfer of some type of property to a recipient where the donor receives nothing or below fair market value in exchange. The donor of the gift is responsible for filing a gift tax return and any tax liability that is due, while the recipient bears no tax liability. However, because the gift tax only applies to gifts of more than $5.43 million and many ordinary gifts are not taxable, most people do not pay this tax.

Learn more about Taxes
Sources:

Related Questions

Explore