Do you know who pays the tax on gift that is subject to federal estate tax?
In a previous post, I described what the IRS considers to be a gift
If a gift has been made and there is no exclusion connected to it, gift tax may be due. ¬†However, while a federal gift tax return may be required based on only one gift of $15,000.00, the chances of owing tax on a gift are much more remote. ¬†The gift or gifts would have to exceed the unified credit amount
, which currently stands at approximately 5.4 Million Dollars.
Nonetheless, if tax is due to the IRS on a gift, usually the person making the gift pays the tax.