#gift-tax

#gift-tax

The IRS imposes a tax on "the transfer of property by one individual to another while receiving nothing, or less than full value, in return." This applies to any transfer of property without adequate compensation.

Even if your gift falls beneath the tax-free thresholds, they should still be declared to keep tax officials happy.

However, rich parents often want to give more despite IRS limitations, leading them to explore legal and less conventional ways to transfer wealth.