What are the tax implications of giving away property?

When it comes to giving away property, it is important to understand the potential tax implications in the state of Delaware. Giving away property in Delaware could also be known as making a gift, and this is considered a taxable event in the state. Depending on the person receiving the gift, the donor may be liable for Delaware’s Gift Tax. In general, parents who give a gift to their children may be liable for the Delaware Gift Tax. The amount of the tax liability will depend on the value of the gift and the relationship between the donor and the person receiving the gift. The Delaware Gift Tax for related persons is graduated from 5.95% to 6.60%. In addition to the Delaware Gift Tax, the donor may also be liable for the federal Gift Tax. The federal Gift Tax rate is 40%. This is applicable to all gifts that exceed $15,000 in value. It is important to note that there are certain exemptions to the Delaware Gift Tax and the federal Gift Tax. For example, gifts made to spouses and gifts of up to $15,000 are exempt from any type of taxation. Additionally, gifts made to charities are completely exempt from taxation. Overall, it is important to understand the various tax implications of giving away property in Delaware. Doing so could help to ensure that the donor is aware of any potential tax liabilities that could result from such a gift.

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