What Is the Gift Tax, and When Does It Apply?

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What is the Gift Tax?

The gift tax is a tax levied on the transfer of property from one person to another in exchange for nothing or for less than the property’s full value. While this seems to cover many transactions that most of us make many times throughout the year, the exceptions to the gift tax actually make taxable gifts fairly rare. Read more

I Just Won a Lawsuit! Is My Award Taxable?

Law gavel on a stack of dollars isolated on gray

When you receive money from a lawsuit or settlement, it’s important to consider your tax liability before you start spending it. The IRS rules make distinctions between different types of awards when determining what you must claim as income and what you can leave out.

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