The gift tax is generally paid at death, and does not apply to gifts to spouses.

Reader comment on: Tom Brady's Taxes

Submitted by Lyle (United States), Feb 5, 2015 22:23

Unless Brady ends up with a taxable estate of more than the limit the gift tax will never really apply. Since many NFL types end up bankrupt after a few years we don't know if the gift tax will ever need to be paid. Prior gifts just reduce the exemption when the estate tax is calculated. Further he could give 1/2 the truck to his wife tax free, then both give the truck getting a 26k exemption. (Plus if you drive the truck around the block before giving it its now a used car and there is also a decrease in value). So yes an income tax at likely 40% or so plus whatever AZ income tax he might owe plus state of residence income tax (NFL players have to file taxes in every state they play in, which is an accountants full employment act provision). (Although the payments in the other states are credits against any income tax in the state of residence)

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