Question
Please read the article David T. Mayes, Keep Gift Tax Rules in Mind When Feeling Generous, Seacoast (Oct. 22, 2017) (Links to an external site.).
Please read the article David T. Mayes, Keep Gift Tax Rules in Mind When Feeling Generous, Seacoast (Oct. 22, 2017) (Links to an external site.). When gifted property is transfered to a donee, the transferor is generally required to file a gift tax return on gifts of over $15,000 in 2018 (generally applied on a per year per donee basis). This sometimes catches taxpayers by surprise. For instance, if a divorced father gives his daughter $20,000 in 2018 for a wedding in 2019 may be surprised to learn that he must then file a gift tax return and potentially pay a gift tax on $5,000. Please answer the following questions: 1) Can you think of a way that the father mentioned above can avoid filing a gift tax return?, and 2) do you think think that the gift tax should be repealed? Please explain why or why not.
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