Wisconsin has no state gift tax
, however federal
gift tax rules
must be observed when gifting property
or money. See the following:
Gift Tax Rules:
can give a gift of up to $12,000 in one year (2006) to another individual before any gift tax implications kick in. If you give above $12,000 to any one individual, you must file a gift tax return. The $12,000 is your gift tax exclusion. There is a separate 12,000 exclusion to each person that you make a gift to. Any amount over this is applied to your lifetime limitation
of 1 million dollars.
Up to 1 million dollars, there is no gift tax due, because of something called the Unified Credit
. After the 1 million dollar lifetime exclusion gets used up, gift tax percentage ranges from 18-46%.
Keep in mind that certain gifts are not subject to gift tax, such as to political organizations, between US
resident spouses, and gifts that are made for directly to a school
facility or professional for tuition or medical expenses
paid on behalf of another.
Also to note, any unified credit used for gift tax purposes will reduce the amount of credit that can be used for estate tax
estate tax purposes.