What are the tax implications of giving away property?

Giving away property in Texas can have several different tax implications. Firstly, you may be subject to federal estate taxes if the property has a taxable value of more than $11.58 million. Additionally, gifting property in Texas may result in a payable gift tax. This is levied on any gift given to an individual or charity that is valued over a certain amount. This amount is $15,000 for the 2020 tax year. In addition to any federal taxes, there may be state taxes to consider as well. For example, Texas imposes a state transfer tax when transferring real estate or business interests to someone else. This tax is imposed on any free transfer that is not made in exchange for services or money, and the rate varies depending on the value of the property being transferred. Finally, any gifts of property given with the intention of avoiding or reducing taxes may be deemed to be illegal. As such, it is important to make sure any gift given in Texas is done legally and with the full understanding of the potential tax implications in order to avoid any legal repercussions.

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What are the tax implications of giving away property?

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