Gift tax exceptions every adviser should know
March 30, 2012 1:45 PM
Gift Tax Exceptions Every Advisor Should Know
Not every gift is a taxable gift, according to the IRS. If you gave money or property to someone as a gift, the following gifts are not taxable gifts:
The Exclusion<br><br>
Gifts that do not exceed the annual exclusion for the calendar year (for 2011 and 2012, the annual exclusion is $13,000).
The Gift of Learning<br><br>
Tuition you pay directly to an educational institution for someone.
The Gift of Health<br><br>
Medical expenses you pay directly to a medical institution for someone.
The Gift of Love<br><br>
Gifts to your spouse.
The Gift of Your Point of View<br><br>
Gifts to a political organization for its use.
The Gift of Helping Others<br><br>
Gifts to charities.
Splitting That Gift?<br><br>
Then you and your spouse can make a gift up to $26,000 to a third party without making a taxable gift. The gift can be considered as made by one-half of you and one-half by your spouse.
But, if you split a gift, you must file a gift tax return (Form 709) to show that you and your spouse agree to use gift splitting. And, that's even if the split gift is less than the annual exclusion.
But, if you split a gift, you must file a gift tax return (Form 709) to show that you and your spouse agree to use gift splitting. And, that's even if the split gift is less than the annual exclusion.
