2015: The GST Tax exemption amount was 5,430,000 (10,860,000 for married couples) and GST Tax rate was 40.
What Do I Need to Know About Gift Taxes?
The urgency to make large lifetime gifts no longer exists.Married couples may exclude a split gift of up to 28,000 per person per year.These are considered tax-free gifts as long as you make the payments directly to the providers of those services you cant just reimburse the person whom you want to benefit.This could also come back to bite your heirs later if your estate is audited.Donors can give up to the annual gift tax exclusion christmas gifts under 15 amount to each recipient without incurring gift taxes.Here are four factors you need to know if you are giving money or property to someone: If you give someone a gift or gifts of money or property and the value is over the annual gift exclusion amount, you will generally owe gift taxes.Note that the annual gift tax exclusion is per recipient.Top off large 2012 gifts.
If you do have to pay Gift Tax when filing your tax return, m will make it easy.
The simplest way to subsidize others is by using the annual exclusion, which allows you to give 14,000 in cash or other assets each year to each of as many individuals as you want.
The exclusion is available regardless of the relationship between the donor (the person making the gift) and donee (the person getting or benefiting from the gift) and is in addition to the annual 13,000 per person per year gift-tax exclusion.
What Is the Gift Tax?
Additionally, the primary function of the educational institution must be to offer formal instruction.In the worst-case scenario they could get stuck paying back gift taxes for the money you put in the trust.You do not have to pay tax on gifts totaling less than (or equal to) the annual exclusion amount (14,000 per recipient in 2017).The most common way to do that is to give beneficiaries Crummey powers: the right for a limited time, usually 30 or 60 days, to withdraw from the trust the yearly gift attributable to that beneficiary.The tax deal that averted the fiscal cliff prevented that from happening.11 the IRS made an inflation adjustment to raise it even higher for 2013.25 million.For the year 2013, the gift tax exclusion is 14,000 per recipient.