What is a Transfer Tax?
A transfer tax is a tax on the value of goods that one party gives to another.
How Does a Transfer Tax Work?
Individuals and organizations frequently give and accept property with no exchange of monetary payment. Two prominent examples of this include gifting and inheritance.
A transfer tax is a duty charged based on the market value of the free asset exchanges, with the most common examples being estate taxes and gift taxes.
Why Does a Transfer Tax Matter?
Gifts and legacies donated for charitable purposes are not subject to transfer taxes.