Legal Question in Tax Law in Washington

Tax consequenses to Gift Recipients

I understand that I can avoid paying a Gift Tax when contributing up to $11,000 per year per recipient. What, however, are the tax consequences to the recipients themselves? Are the gifts considered income and therefor subject to income tax?

Thank you.


Asked on 4/18/03, 4:41 pm

1 Answer from Attorneys
Lawrence Graves Coolidge & Graves PLLC

Re: Tax consequenses to Gift Recipients

Tax-free to recipient. The Government decided that it was easier to tax the donor than the donee, and besides the donor's marginal tax rate is almost always higher than the donee's, so Uncle Sam makes more money by taxing the donor.

Best wishes,

LDWG

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Answered on 4/18/03, 5:44 pm


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