The year is rapidly coming to a close and when it does the unified gift/estate tax exclusion is going to be reduced to just $1 million. This is a very significant reduction because the exclusion has been $5.12 million throughout 2012. Because of the above giving gifts in 2012 can provide you with tax efficiency if your resources exceed $1 million in value. Once the new year arrives anything that you were to give away while you are alive or after your passing that is in excess of $1 million … [Read more...] about As 2012 Wanes Gifting Opportunity Fading Away
Must You Include Gifts When Filing Income Tax Return?
While most people are aware of the fact that there is a Federal estate tax in place you may not know about the gift tax. Yes, there is a federal levy that is imposed on asset transfers of a significant nature while you are still alive. There is an annual exemption of $13,000 per gift recipient. Any gifts that you give exceeding this amount of money to one person during a particular year become taxable. It is possible to utilize a portion of your unified gift/estate tax exemption when you are … [Read more...] about Must You Include Gifts When Filing Income Tax Return?
Gift Tax Not Imposed in Some Instances
If you want to transfer assets to your loved ones while you are still alive these transfers are potentially subject to the federal gift tax. This tax is unified with the estate tax and there is a $5.12 million unified exclusion at the time of this writing in 2012. (It is scheduled to be reduced to $1 million in 2013.) What this means is that gifts that you give during your life using this exclusion will reduce the exclusion amount that is left when your estate is being transferred to your … [Read more...] about Gift Tax Not Imposed in Some Instances