April 21, 2016
Tips for Gift Taxes

Tips for Gift Taxes – Financially Simple

Tips for Gift Taxes If you gave someone money or property, you may owe taxes on the gift. Here are some tips to help you determine if your gift is taxable: Tips for Gift Taxes Non-taxable Gifts. While the default assumption is that gifts are taxable, the following are nontaxable gifts: Gifts that do not exceed the annual exclusion for the calendar year ($14,000 in 2016) Tuition or medical expenses you paid directly to a medical or educational institution for someone Gifts to your spouse Gifts to a political organization for qualified uses Gifts to qualifying charities Annual Exclusion. For 2016, the annual exclusion is $14,000. Gifts under that amount are not subject to the gift tax even if they don’t fall into one of the categories above. If you give a gift to someone else, the gift tax usually does not apply until the value of the gift exceeds the annual exclusion for the year. Splitting a Gift. You and your spouse can jointly give a gift up to $28,000 to a third party without making it a taxable gift. For more information on gifts and taxes, speak to a qualified tax professional. Tip courtesy of IRS.gov