What Is a Gift Tax?
Sometimes, you may want to give presents to others, but did you know that if the gift is valued more than Internal Revenue Service (IRS) limits, your gift will be taxed? Yes, it is called gift tax. This kind of tax can be levied on anything of significant value, like large amounts of money or even real estate. However, there are some tricks to avoid paying gift tax, such as gift splitting and gifts given in trust. So, if you are wealthy enough, the next time you want to give someone a special gift, please consider this type of taxing in advance.