Home     About Us    Contact Us     Contribute     Privacy
Investing
Stocks
Bonds
Mutual Funds
Biz
Credit
Career
College
Economics
Tax
More
 
 
Marketplace
Related Articles
Related Definitions
Related Categories
Tip of the Day

Tip of the Day Make Your Home More Energy Efficient

Make Your Home More Energy Efficient - There are many ways to save money around your home. These can range anywhere from insulating your hot water tank to prevent...

read entire tip

Recently Added
Other Great Sites
 

Gift Tax Exemption

You may be thinking about giving a lump sum of cash to a friend or family member, to help contribute towards a wedding, as a birthday or Christmas present, as a payment towards something someone is saving up for.... The reasons for wanting to make such a gift are numerous, and generosity should not be hindered by worries of tax.

Gift tax is imposed when ownership of property or money is transferred between a donor and a recipient. When a taxable gift is made, the responsibility of the paying the tax usually falls on the donor, rather than recipient. Make sure you consider this as part of you r planning before releasing any funds. Gift tax does not only covers cash gifts. The gift tax will apply to any property that is given from a donor to a recipient.

There are gift tax exemptions, providing you meet the criteria for eligibility. Gift tax can differ if the donor will receive some sort of payment in return for the gift.

As of 2009, transfers of up to $13,000 per person per year are exempt from gift tax. Prior to 2009, the amount was $12,000. Married couples can combine the sum of their two transfer allowances (to a total of $26,000) and still receive the gift tax exemption. Accumulated donations throughout a lifetime can amount up to $1 million dollars before gift tax is incurred ($2 million for married couples). Gifts to a political party (for a party to use) to a charity or to a spouse will not incur gift tax.

Gift Tax exemptions only start to get complicated when an estate is involved, or if the donor is aware that they are terminally ill. Gift tax and estate tax directly interfere with one another. Inheritance tax can also become involved if the money is related to an estate.

If your gift is directly linked to an estate, seek independent financial advice before making the gift payment. It is far better to seek advice in advance, than make the payment, which could later be called into question. Your financial advisor will be able to recommend the most effective ways for monies to be transferred as you desire, and will also advise on the most cost effective strategies to ensure you don't pay an extortionate amount of any kind of tax during the transaction.

During these difficult times, it really is an incredible and noble gesture to make a monetary gift to someone you care about; just make sure that it doesn't cost you more than you bargained for.

Discuss It!

weebly said:

Great Info

healthmash.net/ said:

healthmash.net/ conception Date: Conception is the time when a woman ovulates

prettyrobes.com said:

There's very absolutely no fundamental, daily clothes that may function like a treasure-worthy present than the usual silken kimono robe that may continually be depended on because of its fashionable flexibility. And when your financial allowance enables, choose man made fiber kimono robes, that are both the majority of magnificent as well as long lasting amongst their own type.

https://solarisstudios.com/houston-wedding-photographer/ said:

Inside the past, wedding photographers are technicians behind a black box almost magical that all few would even try to operate it. Back then, wedding young couples are hiring wedding professional photographers to generate wedding pictures of their special day. It is to simply record the event. And the one they chose might be doing six weddings a day.

Most Popular Articles
Most Popular Definitions
 
Daily Definition

Definition of the Day Little Board

Little Board - Little Board is a slang term referring to the American Stock Exchange (AMEX). It also described any exchange that is not the New York Stock Exchange (NYSE). Little board was to refer to the New York Consolidated Stock and Petroleum Exchange, which closed its doors in the...

read entire definition

 
 

 

 

Home     About Us    Contact Us     Contribute     Sitemap

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Copyright © 2009 TeenAnalyst.com