) of the property transferred – and includes inter vivos gifts and transfers of property from the decedent's estate.
The value of most gifts is the FMV when the gift is given minus the consideration given.
The gift tax is an excise tax on the right of an individual to transfer property to another.
As such, the donor of the gift is liable for the gift tax, not the donee.
This article is intended to provide significant insight into how to proceed to negotiate a sale or purchase of a business, and who to engage as part of your counsel and advisory team, without offering an entire treatise on the subject.
Please note that the mechanisms discussed in this article may be used to design other forms of purchase and sale transactions, such as sales between family members, or sales to key employees, however those form of transactions call into play a variety of other issues that may not be specifically addressed, and as a result, require their own independent evaluation.
So if you give your daughter land worth $400,000, for which she pays you $100,000, then $300,000 is considered a gift.