What are the tax implications of giving away property?

In Kansas, if someone decides to give away property to a family member or friend, it could result in some tax implications. This is because the Internal Revenue Service (IRS) will consider anything given away as a “gift.” If the gift exceeds $15,000 (which is the annual exclusion amount), then the donor will have to file a Form 709 Gift Tax Return. This is because the gift may be subject to a federal gift tax. In addition, the person receiving the gift may be liable for some state taxes. For example, in Kansas, there is a Kansas Gift Tax, which applies to gifts valued at more than $1,000 in any given calendar year. The gift recipient may also have to pay some other taxes, such as a Kansas Inheritance Tax or a Kansas Estate Tax, depending on the situation. Finally, it is important for both the giver and the gift recipient to be aware of any other potential tax implications that may arise due to the transfer of property. For example, any capital gains taxes due to the sale of the property will be the responsibility of the gift recipient. Both parties should speak to a financial adviser or an experienced elder law attorney if they have any questions or concerns about the gifting process.

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What are the tax implications of giving away property?

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