Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail
Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail

Transfer Tax

What it is:

A transfer tax is a tax on the value of goods that one party gives to another.

How it works (Example):

Individuals and organizations frequently give and accept property with no exchange of monetary payment. Two prominent examples of this include gifting and inheritance.

A transfer tax is a duty charged based on the market value of the free asset exchanges, with the most common examples being estate taxes and gift taxes.

Why it Matters:

Gifts and legacies donated for charitable purposes are not subject to transfer taxes. Click here to read our tutorial on how to Reduce Your Federal Estate Tax With These 4 Powerful Estate Planning Tools.