What is the gift tax?

The gift tax is a tax imposed on gifts given by individuals to other individuals. In the state of Florida, any gift valued over $15,000 in one calendar year is subject to the gift tax. The person who gives the gift is responsible for paying the tax. The recipient is not responsible for paying the tax. When filing taxes, the individual giving the gift must report the gift on their tax return. They must then calculate the amount of money that is taxable and pay a tax on the amount that is over the $15,000 limit. The rate of tax can vary depending on the amount of money given. It ranges from 18% up to 40%. In addition, there are some gifts, called "tax free gifts," that individuals can give without having to worry about paying the gift tax. These types of gifts include tuition payments, medical expenses, and gifts to charities. In summary, the gift tax is imposed on gifts given by individuals to other individuals in the state of Florida if the gift is valued at $15,000 or more in a single calendar year. The person giving the gift must report the gift and pay the tax on the excess amount. However, there are some gifts that are exempt from the gift tax.

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What is the gift tax?

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