Ordinarily, capital gains are taxed at the time appreciated property is transferred. However, no tax is imposed on a capital gain when appreciated property is transferred by gift. The taxation of appreciation is deferred until the recipient transfers the property.
Comment: See also item 1.022 above.
Tax Type
Tax Expenditure
Item Number
Item Name
Description
Origin
FY2019
FY2020
FY2021
FY2022
FY2023
Personal Income Tax
Deferrals of Gross Income
1.106
Non-taxation of Capital Gains at the Time of Gift
Ordinarily, capital gains are taxed at the time appreciated property is transferred. However, no tax is imposed on a capital gain when appreciated property is transferred by gift. The taxation of appreciation is deferred until the recipient transfers the property. <BR><BR>Comment: See also item <a href="/tax-expenditure-budget/personal-income-tax/exclusions-from-gross-income/1-022">1.022</a> above.
IRC §§ <a href="http://www.law.cornell.edu/uscode/html/uscode26/usc_sec_26_00001001----000-.html" target="_blank">1001</a>, <a href="http://www.law.cornell.edu/uscode/html/uscode26/usc_sec_26_00001015----000-.html" target="_blank">1015</a>
114.6
92.7
144.4
143.1
127.2
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