We often get questions about those implications this time of year so let's take a look at some of the most common tax myths about gifts:Myth #1: You have to pay tax on gifts you receive. Reality: You don't owe tax on gifts that you receive. This may seem counter-intuitive but the whole point of the gift tax is to prevent people from using lifetime gifts to avoid paying the estate tax. Myth #3: You can avoid the gift tax by loaning money at no interest and then forgiving the loan. As always, consider consulting a qualified tax professional if you’re not sure about the tax implications of a gift.

Source: Forbes December 21, 2020 15:00 UTC