Gift Tax One of the taxes that we went over in class was gift taxes. This is a tax that is implied when property, personal items, or money with a value of over 10, 000 dollars is given from one person to another. There are a few exceptions to this law such as giving to non-prop hit organizations or the donation is going towards an education or tuition. I feel that this is a good tax to have because it will keep greedy people from transferring their money around to evade paying taxes on it. Gift tax is will make sure that all citizens pay their fair amount of taxes which is decided by their income. This tax is collected and responsible to the donor.
This person must file a gift – tax return with the Internal Revenue Service. There are little ways to extend the amount of a gift given but there is no way around the tax that there is to be paid. One of the tricks is to have a man and his wife donate because any gift coming from a marriage can equal 20, 000 dollars, 10, 000 from the husband and 10, 000 from the wife. Medical, educational, non – prop hit organization donations, gifts to charities, and gifts to a spouse are tax exempt. Some examples of gifts that are not taxable are giving your nephew 9, 000 dollars for a present because it is not over 10, 000 dollars. Also paying 15, 000 dollars for your friend to go to college is not taxable because it is for a tuition.
The Essay on History of the U.S. Income Tax
The income tax of the United States of America, be it federal, state and local, has changed over time. Different circumstances pushed the government to create taxation and to amend the existing taxation laws. During the pre-Revolutionary War era in the 1700s, taxes were not imposed by the colonial government as their need for tax revenue did not exist. The colonies, on the other hand, had greater ...
Now if you gave your son 25, 000 dollars the first 10, 000 dollars are tax exempt but you have to pay tax on the other 15, 000 dollars. I think that this is a good tax because it keeps people from using other people to hold their money so they do not have to pay taxes on it. It will also make more wealthy people want to give to charity or help out the less needy. This tax overall is good to keep the money circulating around the United States and not all tied up in the pockets of greedy old men. I am sure that people would rather give money to anon – prop hit organization than the IRS so this tax will also help those people out. These people with all the money can give out as much money as they want but once they give a gift over 10, 000 dollars then they pay taxon it.
This law that was adopted in 1932 was established to protect the people from greed and I feel that it is doing a very good job. Professional athletes are writing huge checks to non – prop hit organizations all the time for tax write offs and they receive a plaque for their contribution to the community. I feel that this is a good worth while tax. Works Cited ” Gift Tax” web pubs / pubs /p 95 002. htm ” Gift Tax” Microsoft Encarta 96 Encylopedia. Funk and Wagnalls Corporation..
