Gift Tax
The gift tax is a federal tax on transfers without full value in return. The donor pays the tax; the recipient does not. Florida has no state gift tax. The 2024 annual exclusion is $1,000 per recipient, with a $13.61M lifetime exemption.
Key Thresholds (2024)
- Annual exclusion: $1,000 per recipient (no reporting required)
- Lifetime exemption: $13.61M (no tax until exceeded)
- Married couples: $36,000 per recipient via gift splitting
- Tax rate: 18-40% for amounts over the lifetime exemption
- Florida: No state gift tax
Real Estate Impact
- Gifted property: FMV is the gift amount
- Below-market sales: Difference between FMV and price is a gift
- Adding names to title creates a gift
- Carryover basis applies (donor's basis transfers)
Gift Splitting
Married couples can treat gifts as made equally by both spouses, doubling the annual exclusion and lifetime exemption. Both must file Form 709.
Related Terms
- Estate Planning — Gift tax in estate plans
- Equity — Property value subject to gift tax
- Evidence of Title — Gift deed documentation
Barnes Walker Estate Planning
Barnes Walker's attorneys advise Florida families on gift tax planning and property transfer strategies. Request a legal inquiry for assistance.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC