NC Gift Tax Repealed After All
In what comes as a surprise to me, based on the last news as reported in my postings in the last week or so, yesterday Governor Easley signed HB2436, which includes (page 201) a complete repeal of the North Carolina Gift Tax (Article 6 of Chapter 105 of General Statutes), effective January 1, 2009.
This will certainly make estate tax planning and Medicaid planning easier (and less expensive, in some cases) for North Carolinians. I personally will miss the NC gift tax, since I enjoyed advising people about its peculiarities as compared to the federal gift tax. After all, it it weren't for taxes, my job would be much less interesting!
This will certainly make estate tax planning and Medicaid planning easier (and less expensive, in some cases) for North Carolinians. I personally will miss the NC gift tax, since I enjoyed advising people about its peculiarities as compared to the federal gift tax. After all, it it weren't for taxes, my job would be much less interesting!
If my mother wanted to give a gift to her children now, does this mean she would have to pay taxes on the money she would give each child? Because the repeal does not take place Jan 09
RESPONSE: Outright gifts of money are not subject to gift tax unless the gifts exceed $12,000 per recipient per year. Gifts to children in excess of this amount require the filing of federal and NC gift tax returns, but whether any tax is due depends on the amount of the gift and any prior gifts. I suggest contacting a knowledgeable tax advisor to have your questions answered.
My husband & I gave our son a cash gift of $220,000 last year. Can we now gift him an additional $100,000 after Jan. 1, 2009 without incurring a NC gift tax? I'm sure we still have to complete the appropriate gift tax forms for NC and the IRS.
RESPONSE: Yes, but you will be using part of your federal gift and estate tax exemption, and must file a federal return reporting the gift.
Question? Am I correct in thinking that both myself and my husband can each gift 13,000.00 to each of our children (each child would receive 26,000.00), and neither the doner nor the donee will be taxed on the money gifted? Is there a maximum nontaxable amount or cap the doner can gift yearly? Is there a maximal nontaxable amount that a donee can receive? Does the donee have to claim this money as income earned/assets?
RESPONSE: You are correct. There is no limit on how many people a donor can give $13,000 to, and not limit on how many gifts someone can receive. Gifts are not subject to income taxes.
Simply put, for the purpose of qualifying for medicaid in the event of long time nursing home care, Can a parent deed more than a million dollars in real estate to their child without any gift tax or other tax consequence?
RESPONSE: No. A gift tax return would have to be filed, and the gift would result in the loss of the equivalent amount of estate tax exemption at death. The step-up in basis that would result from the property being owned by the parent at death would also be lost.