- quote -

The obligation to pay a gift tax runs with its maker. It is
unusual but not impossible that the tax runs beyond that.

Frankly most gifts never get to gift tax territory, the
maker would need to be making counted gifts into the $1
million plus level!! Gifts over $11K merely require a
report--and that's not your problem at all!

If you are into that level of gifts, repost with more
facts--but at that level you really should check it with
independent tax counsel, cpa or ea.

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karlo[at]yahoo.com (karlo) writes:

- quote -

The tooth fairy can pay the tax, but the donor has to file
the return.

- quote -

No

- quote -

A check or money order made payable to United States
Treasury and a reference of the donor's SSN, Form 709, and
the tax period.

Phil Marti
Topeka, KS

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arlo[at]yahoo.com (karlo) wrote:

- quote -

Yes.

- quote -

Yes, if there is a legally binding agreement that the
beneficiary pay the tax. The result is what is known as a
"net gift," and the tax calculation is obviously circular.
(The tax reduces the gift, which reduces the tax, which
increases the gift, which increases the tax, which reduces
the gift, etc. Fortunately, the series converges.)

- quote -

The donor files Form 709. The beneficiary gives the donor a
check for the amount of the tax. The check can be payable
to the U.S. Treasury and sent along with Form 709, or it can
be payable to the donor and the donor can then write a check
for the same amount to the U.S. Treasury to send with Form
709.

But this is pretty heady stuff, because there is no gift tax
until the total of all taxable gifts (not including annual
exclusions, charitable and marital deductions, etc.) exceed
$1,500,000. If the donor has given away (or is about to
give away) more than $1,500,000, he or she should be able to
afford a lawyer or CPA that knows the answers to these kinds
of questions.

*Dan Evans
*"One is not superior merely because one sees the world as odious."
*Francios Rene de Chateaubriand (1768-1848).

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karlo[at]yahoo.com (karlo) wrote

- quote -

Unless it's an extremely large gift, no gift tax will
currently be due. The lifetime exemption on estate tax also
applies to the gift tax. So until that amount is reached
(depending on the year the donor dies), gift tax returns may
be required but gift tax payments will not.

Stu

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Can a beneficiary of a gift pay the tax on a gift? If so,
does the obligation to pay the tax reduce the value of the
gift and reduce the amount of tax owed? Also, what form
does the beneficiary have to complete to pay the tax?

Thanks
Karl

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