State Gift Tax?

Jan 09, 2017 2 Replies

Tom gives Mary a large gift. The state Tom lives in has no gift tax, but Mary's state does? Is there any state gift tax on it? (or any need to file a state gift tax return with anyone?)


It may depend on Mary's state, but probably not. Gift tax is a tax on the giver (Tom), and Mary's state probably does not have jurisdiction over Tom, and may not have a parallel tax on Mary. (See sales tax (on the seller) and use tax (on the buyer).)

-- Arthur Rubin, CRTP, AFSP, Brea, CA (CA has no gift tax)

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