Question

Determine the type of estate the church will own after completion of the gift? Provide details and a clear explanation of your answer.

Determine the type of estate a church will own after completion of the gift? Provide details and a clear explanation of your answer.

- a gift tax is the tax on money or property that one living person gives to another. Items received upon the death of another are considered separately under the inheritance tax.

Answer 1

Please mentioned below the answer

A gift deed is a document that records the act of giving a gift and is executed between the donor (the person giving the gift) and the donee (person receiving the gift).Though it is not compulsory to execute a gift deed while gifting any asset, it does create a valid documentary record. A gift can be movable or immovable property that is transferable and tangible.As gifting is a voluntary action, the gift deed should mention that the deed has been made voluntarily and out of the donor’s own choice without any force or coercion. The deed should also declare that the donor is solvent (not bankrupt) and that the gift is being made without any consideration.The next step is acceptance of the gift by the donee. Acceptance of the donee is recorded in the gift deed by the donee’s signature and is also substantiated by acceptance of possession of the gift. Another key element to this step is that the acceptance of gift should happen during the life of the donor. The gift may be rendered invalid otherwise
Gifts that involve immovable property should be registered under the Transfer of Property Act. Unless registration of the gift deed is completed, the title does not pass on to the donee, in case of gift of immovable property. Stamp duty shall be payable based on the value of the gift. To ascertain fair value of the immovable property for calculation of stamp duty, approved valuation experts will have to carry out valuation of the property.

In economics, a gift tax is the tax on money or property that one living person gives to another. Items received upon the death of another are considered separately under the inheritance tax. Many gifts are not subject to taxation because of exemptions given in tax laws. The gift tax amount varies by jurisdiction, and international comparison of rates is complex and fluid.
When you give a gift of money or property to someone, you may owe a Gift Tax. A taxable gift is considered to be a transfer of any money or property to another person with no expectation of full compensation or repayment of at least equal value. Reduced-interest or interest-free loans may be considered gifts for tax purposes.

Here are four factors you need to know if you are giving money or property to someone:

1. If you give someone a gift or gifts of money or property and the value is over the annual gift exclusion amount, you will generally owe gift taxes.
2. If you give a gift of property, taxes must be paid on the fair market value of the item (not the purchase price, nor the original value).
3. You do not have to pay tax on gifts totaling less than (or equal to) the annual exclusion amount ($15,000 per recipient in 2019 and 2018).
4. You do not have to pay tax on gifts that qualify for other exclusions (see below).

When someone inherits money or property, the transfer may be subject to the Estate Tax. The Estate Tax is commonly referred to as the Death Tax because it is the tax paid on the transfer of money and property after a person's death. If the value of your estate is over the current exemption amount when you die, your estate will owe tax on the excess amount at the applicable Estate Tax rate. The Estate Tax is paid according to the tax rates in place in the year of the person's death.