Question

Explain what is meant by the immediate family and outline the tax implication on the transfer of Property

Answer 1

Immediate family means a child, parent, spouse, sister, brother, grandchild, grandparent, step-parent, step-child, step-sister or step-brother of the individual. Also legally adopted child of the tax payer would be treated as a child by blood. The gift tax would be imposed on the transfer of property by family members transfers to another while less than full value or receiving nothing, in return. The tax would be applicable whether the donor wants the transfer to be a gift or not