Legal Question in Tax Law in Wisconsin

Re: Gifted Money

There are a number of rules relating to the taxability of gifts. Some are federal, others vary by state. The federal government permits annual gifts from one donor to one donee of up to $12,000 per year in 2007, without tax and without filing a return. Gifts above that amount require filing a return, but may not result in tax, because the federal government also allows a large combined lifetime and death exclusion. Wisconsin presently has no gift tax.