New York Gift Tax Law

by Patricia Woodside

The New York Gift Tax law was repealed in 1999. Since then, New Yorkers have not paid state tax on gifts.

Items Subject to Gift Tax

According to New York State (NYS) tax instructions, the gift tax was imposed on “all transfers of property by gift made after January 5, 1972, by any individual, resident or nonresident, during his lifetime, for which adequate and full consideration in money or money’s worth was not received.” All real and personal property, tangible and intangible, was covered by the NYS gift tax law. Recipients of gifts were required to file the appropriate forms. For gifts made after 1982 through 1999, New Yorkers were responsible for filing Form TP-400, New York State Gift Tax Return, or short form TP-402. Even today, amendments to any returns for these tax years would require filing of these forms if a gift were received in the tax year.

Items Excluded From Gift Tax

New York gift tax law did not apply to funds used for tuition paid of medical care paid directly to an institution or spousal transfers after 1983, nor to transfers to qualified charitable organizations. Annual gifts of up to $10,000 in a single year were excluded. The gift tax applied only to transfers made by individuals, not to transfers initiated by a corporation, partnership, estate or trust.

Differences With Federal Gift Tax Law

The federal gift tax has not been repealed, although the gift tax exclusion was raised to $13,000 in 2009 and the maximum gift tax rate was lowered from 45 percent to 35 percent for 2010 for gift recipients. The federal gift tax law also excludes gifts to political organizations. Also, the first million dollars in gifts reported is excluded from gift tax for gift donors.

About the Author

Patricia Woodside has written articles, business proposals and training manuals since 1985 while working in information systems management and business consulting. In 2006, she began writing short fiction for women's magazines, The Wild Rose Press and Amani Publishing, and book reviews for FreshFiction.com. Woodside received an engineering degree from Cornell University and an MBA from the University of Cincinnati.

Photo Credits

  • Goodshoot/Goodshoot/Getty Images