What is Gift Tax Minnesota?
Gift Tax, sometimes confused with Inheritance / Estate Tax, is a tax on the transfer of cash/asset/property by one person to another while receiving nothing in return. The tax applies whether the donor intends the transfer to be a gift or not. The Gift Tax and Estate Tax are interrelated. The IRS allows you to give up to $14,000 per year to any number of people without incurring any gift taxes.
If the gift exceeds $14,000 in a given year, the person who makes the gift, not the recipient, has to file a gift tax return and pay any tax owed. The giver has to file the tax form 709. However, there is $5,430,000 lifetime exemption before you have to pay gift.
The Gift tax is very correlated with the estate tax. Any gift that exceeds the annual exemption of $14,000 reduces your estate tax lifetime exemption of $5,430,000. For example, you give your son $114,000 in 2015. $14,000 is exempted while you have to file a gift tax return and report that you used $100,000 of your $5,430,000 lifetime exemption.
How much is Minnesota Gift Tax?
There are NO Minnesota Gift Tax. All Gift Tax are exempt in the State of Minnesota.
If the total Estate asset (property, cash, etc.) is over $5,430,000, it is subject to the Federal Estate Tax (Form 706).
How to file Minnesota Gift Tax?
Since there are no Minnesota Gift Tax, you do not need to file any tax forms.
Get more information on Minnesota Gift Tax:
You can call IRS directly at 800-829-1040 or call the Minnesota Department of Revenue regarding gift and estate tax.