Tax on Wealth Transfers Gifts inheritances Not income Person making gift has PRIMArY obligation to pay any tax due Tax applies to act of transferring property Tax applied against FMV of gift 6
6 Tax on Wealth Transfers Gifts & inheritances NOT income Person making gift has PRIMARY obligation to pay any tax due Tax applies to act of transferring property Tax applied against FMV of gift
Cumulative Progressive Tax All taxable gifts made after 1976 accumulated for each donor Cumulative total determines tax rate applied to current gift Prior gift taxes paid and/or unified credit may negate or reduce amount of current tax due
7 Cumulative & Progressive Tax All taxable gifts made after 1976 accumulated for each donor Cumulative total determines tax rate applied to current gift Prior gift taxes paid and/or unified credit may negate or reduce amount of current tax due