Gift tax rules
in any state, follow the same guidelines as the federal tax laws
Under current law, each taxpayer is allowed to give gifts of up to $1 million in their lifetime before any gift tax is due. Taxpayers are also allowed to give annual gifts of up to $13,000 to any one individual, without that gift counting towards their lifetime exemption.
If you give someone a gift which exceeds the annual exclusion of $13,000, then you must report the value of the gift by filing Form 709 with the IRS. There is not actually any tax
due with the form if you have not already exhausted your $1 million lifetime gift allowance, but you would be required to report the gift, and it would then reduce your remaining lifetime limit.
So if for example you are buying a house for $200,000 and giving half of it to your partner, then you would file Form 709 and report that you gave him a gift valued at $100,000. But neither of you would owe any tax on that transaction
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