(Important: The gift tax is repealed effective for gifts made on or after January 1, 2009. The following information applies to gifts made before January 1, 2009.)
A gift tax is imposed on a donor with donees divided into three classes: Class A includes any lineal ancestor or descendant, or adopted child or stepchild; Class B includes brother, sister, descendant of a brother or sister, and aunt or uncle by blood of the decedent; Class C includes all others. A North Carolina Gift Tax Return (Form G-600) is required for gifts exceeding the annual exclusion amount. For North Carolina gift tax purposes, the annual exclusion amount is equal to the federal inflation-adjusted amount provided in section 2503(b) of the Internal Revenue Code. The annual exclusion amount for gifts made on or after January 1, 2006 is $12,000. The exclusion does not apply to gifts of future interest. Gifts to spouses are exempt, including property given to a spouse as a qualified terminable interest property under federal law.
In addition, a lifetime exemption of $100,000 is allowed each donor for gifts made to Class A donees, including the donor's lineal issue, lineal ancestor, adopted child or stepchild of the donor. When this exemption or any part thereof is applied against gifts to more than one donee, it is apportioned among the donees in the same ratio as the gross gift after exclusion to each donee is to the total gifts to Class A donees in the calendar year in which the gifts are made.
If the amount of a taxpayer’s net gifts is corrected or otherwise determined by the federal government, the taxpayer must, within six months after being notified of the correction or final determination by the federal government, file a gift tax return with the State reflecting the corrected or determined net gifts.
Gift Tax Extensions: Form D-410G, Application for Extension for Filing Gift Tax Return, must be filed to extend the time for filing gift tax returns.