North Carolina does not have a gift tax. However, you may trigger a gift tax at the federal level depending on the value of the gifts you provide.The letter must explain who is gifting the money, where the donor's funds are coming from and the relationship between the donor and the recipient. Use Form 709 to report: Transfers subject to the federal gift and certain generation-skipping transfer (GST) taxes. If you give people a lot of money or property, you might have to pay a federal gift tax. But most gifts are not subject to the gift tax. A gift letter must contain the donor's name, the gift's value, confirmation that the gift is not to be repaid, and the donor's signature. If you make a gift in excess of the annual gift tax exclusion amount, you'll be required to file a Federal gift tax return using IRS Form 709. The gift giver may need to provide bank statements from where the funds originated. A requirement to file a gift tax return does not always mean you must pay gift tax.

Money Gift Letter For Tax Purposes In North Carolina

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