Gift Tax Calculation

Calculation of the Federal Gift Tax

Gift tax is the tax applied when one individual gives property to another and receives nothing, or less than the value of the property, in return—whether or not it is intended as a gift. Giving someone a substantial monetary or asset gift typically means that they (and you) will have to know what kind of taxes are going to be applied to the gift. This can be complicated because there are different rules for different types of gifts.