What is the gift tax?

The gift tax is a type of tax when one person gives another person or entity a large sum of money or other valuable assets. In Washington, the gift tax applies to any gift worth more than $15,000 in a calendar year given to any individual recipient. The person who gives the gift is responsible for paying the tax. When someone gives a gift over $15,000, they must file a gift tax return with the Internal Revenue Service (IRS). On the return, the giver must state the amount of the gift, who it was given to, and the fair market value of the gift. The gift tax rate is progressive, meaning it increases with the value of the gift given. The tax rate can be as high as 40%. If the giver of the gift is required to pay the gift tax, then the recipient of the gift does not owe taxes on it. Additionally, if the recipient of the gift is a spouse, the giver is allowed to give up to $30,000 without having to pay the gift tax. Overall, the gift tax is a type of tax that applies to any large sum or valuable asset given as a gift. The tax is paid by the giver of the gift and the rate is progressive, with a maximum rate of 40%. However, if the recipient of the gift is a spouse, then the giver is allowed to give up to $30,000 without having to pay the gift tax.

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What is the gift tax?

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