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Wendy Reed
Wendy Reed, Enrolled Agent
Category: Tax
Satisfied Customers: 3346
Experience:  15+ years tax preparation and tax advice.
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What are the tax rules for gifts in Wisconsin?

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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:
An 
individual 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 or medical 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.

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Question

What are the tax rules for gifts in Wisconsin?
Submitted: 10 years ago.
Category: Tax
Hello there,
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:
An individual 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 or medical 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.
Wendy Reed and 2 other Tax Specialists are ready to help you
Customer: replied 10 years ago.
How would I give $30,000 to my children that I got as a beneficerybeneficiary from life insurance without paying gift tax.? Could I make it into a loan?
I would not make a loan between family members to avoid gift tax, it is too complicated and interest you receive would be taxable. If you are no nowhere near the lifetime one million dollar taxable gift amount, you will not pay any gift tax. If you gift more than $12,000 to one person in one year, you need to file the gift tax form. To avoid this, you may have several options:
1. Gift less than $12,000 to each individual in more than one tax year. For example, gift $10,000 to each child over three years.
2. If the child has a spouse, gift $12,000 to each spouse.
3. If you have a spouse, you and your spouse can each gift $12,000 to each child.
Wendy Reed and 2 other Tax Specialists are ready to help you
Customer: replied 10 years ago.
Thank you for your expert advice