Video: Examples of Gift Taxation

In this lesson, Nick Palazzolo, CPA, breaks down the intricacies of gift taxation with practical examples that bring the concept to life. He begins by discussing a scenario where no gift tax was paid on a property transfer, shedding light on how the tax obligation shifts from the giver to the receiver upon sale and the resulting recognition of gain or loss. Nick then delves into more complex situations, including the impact of gift tax payment on the recipient's basis and the percentage of gift tax attributable to property appreciation. With his clear explanations, Nick ensures that every angle is covered, from tax implications of interspousal transfers to the nuances of basis determination for inherited properties, making sure all potential exam scenarios are touched upon.