What are the tax implications of giving away property?

Giving away property in Arkansas can have tax implications for both the person transferring the property and the person receiving it. Depending on the amount of property transferred and the relationship between the two parties involved, there may be federal and state taxes applicable to the transfer. The Gift Tax is a federal tax paid by the giver of a gift if they are transferring more than a certain amount of money or property each year. In 2020, the amount for which a person can give away property without being liable for the federal gift tax is $15,000. Any gift that exceeds this amount may require the giver to file a gift tax return and may be subject to a gift tax. At the state level, Arkansas does not have a gift tax, but it does have an inheritance tax. Depending on the relationship between the person giving away the property and the person receiving it, the inheritor may be liable for Arkansas state taxes on the value of the inherited property. It is important for both the giver and the receiver of the property to understand the applicable tax implications of any transfer of property in Arkansas. Consulting with a trusted attorney knowledgeable in Elder Law can help to ensure that the transfer of property is done in the most tax-efficient way.

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What are the tax implications of giving away property?

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