There is a federal gift tax in place, and it has been around continuously since 1932. To provide some historical background information, the estate tax was enacted in 1916. During the first few years, people who were exposed to the estate tax gave gifts to their family members to avoid the tax. The gift tax was enacted in 1924 to close this window of opportunity. Some people were not happy with this arrangement, so pressure was applied, and the gift tax was repealed in 1926. In 1932, the gift tax was reenacted, and it is been around ever since then. During the 1970s, it was unified with the estate tax.
Topics covered in this report include:
- Marital Deduction and Portability
- Tax-Free Giving