NC Gift Tax Repealed After All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!
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.