Instruct: Given a question, retrieve documents that answer the question.
Query: Are gifts taxed in the United States?
If a person is a non-resident alien for purposes of gift tax, taxation of gifts is determined in a different way. If the property is not located in the U.S., there is no gift tax. If it is intangible property, such as shares in U.S. corporations and interests in partnerships or LLCs, there is no gift tax.
The U.S. Government classifies Puerto Rico as an independent taxation authority by Federal Law codified on the Title 48 of the United States Code as . Puerto Rico residents are required to pay U.S. federal taxes, import/export taxes, federal commodity taxes, social security taxes etc. Individuals working with the Federal Government pay federal income taxes while the rest of the residents are required to pay federal payroll taxes (Social Security and Medicare), as well as Commonwealth of Puerto Rico income taxes. All federal employees, plus those who do business with the federal government, in addition to Puerto Rico-based corporations that intend to send funds to the U.S., and some others also pay federal income taxes. In 2009, Puerto Rico paid into the US Treasury. That was more than paid by the state of Vermont, and about the same as paid by the states of Wyoming, Montana, and North Dakota. It was also over six times more than all U.S. Armed Service members overseas and all other U.S. territories combined.
The United States, Canada, and Mexico all grant unconditional birthright citizenship and allow dual citizenship. The United States taxes its citizens and green card holders worldwide, even if they have never lived in the country. In Mexico, only naturalized citizens can lose their Mexican citizenship again (e.g., by naturalizing in another country).
Though the Commonwealth government has its own tax laws, Puerto Ricans are also required to pay many kinds of U.S. federal taxes, not including the federal personal income tax for Puerto Rico-sourced income, but only under certain circumstances. In 2009, Puerto Rico paid into the U.S. Treasury. Residents of Puerto Rico pay into Social Security, and are thus eligible for Social Security benefits upon retirement. They are excluded from the Supplemental Security Income (SSI), and the island actually receives a smaller fraction of the Medicaid funding it would receive if it were a U.S. state. Also, Medicare providers receive less-than-full state-like reimbursements for services rendered to beneficiaries in Puerto Rico, even though the latter paid fully into the system.
The Commonwealth government has its own tax laws and Puerto Ricans are also required to pay some US federal taxes, although most residents do not have to pay the federal personal income tax. In 2016, Puerto Rico paid into the US Treasury. Residents of Puerto Rico pay into Social Security, and are thus eligible for Social Security benefits upon retirement. However, they are excluded from the Supplemental Security Income.
In addition, because the cutoff point for income taxation is lower than that of the US IRS code, and the per-capita income in Puerto Rico is much lower than the average per-capita income on the mainland, more Puerto Rico residents pay income taxes to the local taxation authority than if the IRS code were applied to the island. That occurs because "the Commonwealth of Puerto Rico government has a wider set of responsibilities than do U.S. State and local governments." As residents of Puerto Rico pay into Social Security, Puerto Ricans are eligible for Social Security benefits upon retirement but are excluded from the Supplemental Security Income (SSI) (Commonwealth of Puerto Rico residents, unlike residents of the Commonwealth of the Northern Mariana Islands and residents of the 50 States, do not receive the SSI), and the island actually receives less than 15% of the Medicaid funding it would normally receive if it were a state. However, Medicare providers receive less-than-full state-like reimbursements for services rendered to beneficiaries in Puerto Rico even though the latter paid fully into the system In general, "many federal social welfare programs have been extended to Puerto Rican ("sic") residents, although usually with caps inferior to those allocated to the states." A common misconception is that the import/export taxes collected by the U.S. on products manufactured in Puerto Rico are all returned to the Puerto Rico Treasury. That is not the case, as such import/export taxes are returned only for rum products, and even then, the US Treasury keeps a portion of the taxes.
The Commonwealth of Puerto Rico is a territory of the United States and Puerto Ricans are US citizens. However, Puerto Rico is not a US state. Because of this, only Puerto Rican residents who are government employees, and those with income sources outside of the territory, pay federal income tax. All other employers and employees pay no federal "income" taxes. However, residents of Puerto Rico and businesses operating in Puerto Rico do pay some federal taxes, and the commonwealth's government has its own taxes as well.
Residents of Puerto Rico pay U.S. federal taxes: import and export taxes, federal commodity taxes, social security taxes, thereby contributing to the American Government. Most Puerto Rico residents do not pay federal income tax but do pay federal payroll taxes (Social Security and Medicare). However, federal employees, those who do business with the federal government, Puerto Rico–based corporations that intend to send funds to the U.S. and others do pay federal income taxes. Puerto Ricans may enlist in the U.S. military. Puerto Ricans have participated in all American wars since 1898; 52 Puerto Ricans had been killed in the Iraq War and War in Afghanistan by November 2012.
Puerto Ricans have United States citizenship and vote for a Resident Commissioner of Puerto Rico, with voice but without vote, in the United States House of Representatives. With the exception of federal employees (such as employees of the United States Postal Service, Federal Bureau of Investigation, and servicemen in all branches of the military), residents of Puerto Rico generally do not pay federal income taxes (with the exception of Social Security and Medicare taxes) and Puerto Rico has no representation in the Electoral College that ultimately chooses the U.S. president and vice president.
During the 2005–2007 Puerto Rico economic crisis, the Puerto Rican Independence Party submitted various bills that would have taxed corporations making $1 million or more in annual net profits an extra ten percent above the average tax rate these corporations pay, which hovers around 5%. The PNP and the PPD parties amended the bill, taxing the corporations the traditional lower rate. Despite objections presented by the PIP, the PNP and PPD also allowed the companies to claim the additional tax as a credit on next year's bill, making the "tax", in effect, a one-year loan. Puerto Rico has been said "There is no place in the territorial limits of the United States that provides such an advantageous base for exporters. " Because of this, many US companies moved their headquarters and manufacturing facilities there. This is why the PNP and PPD believed the tax increase would exacerbate the problems
Gun laws in Guam regulate the sale, possession, and use of firearms and ammunition in Guam, an unincorporated territory of the United States. As Guam is a territory of the United States, many U.S. federal laws apply, as well as Constitutional rulings and protections.
Japan gave 3,020 cherry blossom trees as a gift to the United States in 1912 to celebrate the nations' then-growing friendship, replacing an earlier gift of 2,000 trees which had to be destroyed due to disease in 1910. These trees were planted in Sakura Park in Manhattan and line the shore of the Tidal Basin and the roadway in East Potomac Park in Washington, D.C. The first two original trees were planted by first lady Helen Taft and Viscountess Chinda on the bank of the Tidal Basin. The gift was renewed with another 3,800 trees in 1965. In Washington, D.C. the cherry blossom trees continue to be a popular tourist attraction (and the subject of the annual National Cherry Blossom Festival) when they reach full bloom in early spring. Just outside of Washington, D.C., the suburb of Kenwood in Bethesda, Maryland has roughly 1,200 trees that are popular with locals and tourists.
Special taxation laws also affect the special economic zones in North Korea (in particular the Kaesong Industrial Complex) where foreign companies are allowed to operate. There is therefore corporate tax in North Korea, as outlined by the Processing Trade Law, Lock Gate Law and Copyright Law, and related legislation, including laws on tax evasion. An estimate of this corporate tax in early 2000s was for 10-14%. North Korean workers there are subject to the usual indirect taxation: their wages are paid in hard currencies by foreign companies to North Korean government, which then pays the workers in North Korean currency, minus the value of "insurance taxes and socio-cultural fees". A 2013 estimate for the tax on individual workers suggested that the state takes 45% of their wages in a form of a tax.
Trade tariffs are a tax that are placed on the import of foreign goods. Tariffs increase the price of imports and are usually levied onto the country the goods are being imported from. Governments will use tariffs as a way to promote competition within their own country with businesses of the foreign country that wishes to sell their goods or services. In some instances, a country's government will use them as a means of protectionism for their own interests. In modern history, generally starting at the mid-20th century, the use of tariffs has been largely diminished in favor of the rise of international trade. Beginning in 2017, the Trump administration began to impose tariffs on several of nations that were involved in trade deals with the United States. The countries targeted by the Trump Tariffs then retaliated with their own tariffs on American goods.
At the UN World Conference against Racism 2001, when the issue of compensation for colonialism and slavery arose in the agenda, President Fidel Castro of Cuba advocated the Tobin Tax to address that issue. According to Cliff Kincaid, Castro advocated it "specifically in order to generate U.S. financial reparations to the rest of the world", however a closer reading of Castro's speech shows that he never did mention "the rest of the world" as being recipients of revenue. Castro cited holocaust reparations as a previously established precedent for the concept of reparations. Castro also suggested that the United Nations be the administrator of this tax, stating the following:May the tax suggested by Nobel Prize Laureate James Tobin be imposed in a reasonable and effective way on the current speculative operations accounting for trillions of US dollars every 24 hours, then the United Nations, which cannot go on depending on meager, inadequate, and belated donations and charities, will have one trillion US dollars annually to save and develop the world. Given the seriousness and urgency of the existing problems, which have become a real hazard for the very survival of our species on the planet, that is what would actually be needed before it is too late.
The draft agreement says that U.S. military and Defense Department civilian personnel are exempt from visa requirements and taxation. Afghan taxes and other fees will not be imposed on the entry or exit of goods specifically for the use of U.S. forces. An annex to the draft lists locations where Afghanistan agrees to provide facilities for U.S. forces, including Kabul; Bagram, north of the capital, where the United States has its largest current base; Mazar-e Sharif in northern Afghanistan; Herat in the west; Kandahar in the south; Shindand in Herat province; Sharab in Helmand province; Gardez, south of Kabul; and Jalalabad, to the east. The draft document gives the U.S. the right to deploy American forces on nine bases, including the two biggest, the airfields in Bagram and Kandahar. It also allows U.S. military planes to fly in and out of Afghanistan from seven air bases, including Kabul International Airport. U.S. forces would be permitted under the document to transport supplies from five border crossings, described along with the air bases as "official points of embarkation and debarkation." All bases in Afghanistan would revert to Afghan ownership and sovereignty after 2014, according to the draft.
In some countries, such as Costa Rica and Honduras, the U.S. dollar is commonly accepted, although not officially regarded as legal tender. In Mexico's northern border area and major tourist zones, it is accepted as if it were a second legal currency. Many Canadian merchants close to the border, as well as large stores in big cities and major tourist hotspots in Peru also accept U.S. dollars, though usually at a value that favours the merchant. In Cambodia, U.S. notes circulate freely and are preferred over the Cambodian riel for large purchases, with the riel used for change to break 1 USD. After the U.S. liberation of Afghanistan, U.S. dollars are accepted as if it were legal tender.
The preliminary determination directs U.S. Customs and Border Protection to require cash deposits for the duties on all new imports as well as softwood products imported over the past 90 days. To remain in effect, however, the duties need to be finalized by Commerce and then confirmed by the U.S. International Trade Commission after an investigation that includes testimony from both sides. In response, the Canadian federal government indicated that it was exploring the possibility of banning United States coal from being exported through Canadian ports and imposing a retaliatory tariff on lumber exports from Oregon.
The bill required that the Association pay for the half dollars at par, and that the dies and other costs of preparation not be at the expense of the United States. The figure of six million was the largest in American commemorative history, exceeding the five million for the Stone Mountain issue. Congress placed no restriction on which mint should strike the coins, and did not put a time limit on the authorization. According to numismatists Anthony Swiatek and Walter Breen in their encyclopedia of US commemoratives, the bill passed "possibly because the stated purpose was nationalistic rather than obscurely local". Coin dealer and author Q. David Bowers states that "on the surface the motivation seemed to be good enough ... doubtless many American citizens had family ties to the famous migration".
Guam became the first overseas territory of the United States to recognize and perform same-sex marriages in June 2015. On June 5, 2015, Chief Judge Frances Tydingco-Gatewood of the United States District Court for the District of Guam ruled that Guam's prohibition on same-sex couples marrying is unconstitutional. She cited the Ninth Circuit Court of Appeals decision in "Latta v. Otter" striking down identical bans in Idaho and Nevada. The territory began issuing marriage licenses to same-sex couples four days later. The Legislature passed the "Guam Marriage Equality Act of 2015" on August 11, 2015, making Guam's marriage laws gender-neutral.
Beginning in January 2000, the Mint began sending dollar coins to Wal-Mart and Sam's Club stores across the United States in order to help promote and circulate the coins. In total, $100 million worth of the dollars were shipped to the stores as part of the promotion. Some store owners criticized the Mint's partnership with Wal-Mart and Sam's Club as being unfair to smaller retailers. In response, Diehl noted that "every retailer and commercial establishment has the right to carry the Golden Dollar. The Mint's agreement with Wal-Mart is designed to encourage all retailers and commercial businesses in the nation to use the new Golden Dollar in everyday transactions."
Purchases of gift cards are not subject to sales tax in all states. These purchases are considered to be similar to exchange of cash. The sales tax will be charged when gift cards are used as a method of payment for taxable goods or services. There was a proposal in New York State to impose a sales tax when a gift card is purchased instead of imposing it when the card is used, but it failed.
The federal gift tax is applicable to the donor, not the recipient, and is computed based on cumulative taxable gifts, and is reduced by prior gift taxes paid. The federal estate tax is computed on the sum of taxable estate and taxable gifts, and is reduced by prior gift taxes paid. These taxes are computed as the taxable amount times a graduated tax rate (up to 35% in 2011). The estate and gift taxes are also reduced by a "unified credit" equivalent to an exclusion ($5 million in 2011). Rates and exclusions have varied, and the benefits of lower rates and the credit have been phased out during some years.
A gift tax is a tax imposed on the transfer of ownership of property. The United States Internal Revenue Service says, a gift is "Any transfer to an individual, either directly or indirectly, where full compensation (measured in money or money's worth) is not received in return."
The Uniform Gifts to Minors Act (UGMA) is an act in some states of the United States that allows assets such as securities, where the donor has given up all possession and control, to be held in the custodian's name for the benefit of the minor without an attorney needing to set up a special trust fund. This allows a minor in the United States to have property set aside for the minor's benefit and may achieve some income tax benefit for the child's parents. Once the child reaches the age of maturity (18 or 21 depending on the state), the assets become the property of the child and the child can use them for any purpose. Contributing money to an UGMA account on another person's behalf could be subject to gift tax; however, the Internal Revenue Code of the United States allows persons to give up to the annual gift tax exclusion to another person without any gift tax consequences, and gifts exceeding that amount as long as total gifts are below the lifetime limits.