DEAR BOB: Who pays the taxes on a once-in-a-lifetime, $1 million property gift? --John L. DEAR JOHN: Nobody! When an individual donor gives away up to $1 million in cash or other assets, he or she must file a federal gift tax return with the IRS. But no federal gift tax will be due if the donor has not previously given away more than $1 million tax-free under the $1 million federal gift tax exemption. Purchase Bob Bruss reports online. When the donor dies, the $1 million lifetime gift tax exemption used will be subtracted from the decedent's federal estate tax exemption (currently $2 million for decedents dying in 2007 or 2008). For full details, please consult your tax adviser. SEVERE TREE TRIMMING PROVED COSTLY DEAR BOB: For several years I tried to get my neighbor to trim her...
Get Inman via Facebook Messenger
Our top headlines delivered once a day.