This informational publication is intended to alert you that certain transfers of property are considered gifts. Understanding the gift tax is important because if you are required to file a return and you do not do so, you may be charged various penalties. Although this publication will only provide general information, it will refer you to additional state and federal publications that will assist you in complying with Federal and Connecticut gift tax requirements.
Gift tax is the tax that is imposed on the transfer of property by gift during each calendar year .
A present interest gift is the unrestricted right to the immediate use, possession, or enjoyment of the property, or the income from the property. With the gift of a future interest , no annual exclusion is allowed. A future interest gift is a gift that will begin in use, possession, or enjoyment at some future date or time. He conveys title to the property to his son. John does not receive any money or other type of payment from his son.