Internal Revenue Code provides various rules about the taxation of gifts so when you are planning a “gift” of money or property to someone-friend ,relatives or even unrelated person , you must know about ” who pays gift tax ?”. In other words, every time the amount or value of gift is above a threshold value , you owe a Gift Tax to federal government. Readers should note that 26 U.S. Code Chapter 12 – GIFT TAX deals with all aspects of gifts and its taxation under Internal Revenue Code. Here are most important points which every tax payers under US tax laws must be aware of :
