Home     About Us    Contact Us     Contribute     Privacy
Mutual Funds
Related Articles
Related Definitions
Related Categories
Tip of the Day

Tip of the Day Use Your Frequent Flier Miles Often

Use Your Frequent Flier Miles Often - If you are not collecting frequent flyer miles, you need to ask yourself why not, as they are like receiving a small gift...

read entire tip

Recently Added
Other Great Sites

Lifetime Gift Tax

In many countries, gifts do not attract any taxation. However there could be some outstanding circumstances that may lead to the taxation of gifts. Life time gift taxes is a term commonly used to refer to the amount of gifts that an individual is entitled to give out during his/her lifetime without being taxed. If the individual overshoots this margin in the value of gifts he has awarded then the surplus will start attracting taxation.

What is the value of gifts that can be given without tax in a lifetime?

In the U.S, the figure is marked at $1 million. This thus means that each individual is entitled to issue gifts totaling up to this amount without the gift being taxed. If the individual exceeds this amount then he/ she must start paying taxes on any more gifts awarded.

Does the gift attract taxation once the new owner has received it?

There are rules governing the taxation of gifts once they get to the gifted. If the gift given happens to be an income generator, then the income generated from the gift will have to be taxed at existing tax rates. There is also a limit to the amount in value of the gifts you can give to different people per year. As of 2008 the annual exclusion amount was $12,000 and in 2009, the figure was adjusted to $13,000.

How do you determine a gift item?

A gift is defined as an item or reward given to somebody absolutely with no strings attached. This is to say that you cannot classify any thing given to you as a result of some job you did or a service you rendered as a gift. It is also worth noting that gifts do not attract tax and therefore the recipient has no obligation to report them on their income tax returns. Although the gift you receive does not attract tax, if the gift helps you in making any revenue, then the revenue must be taxed accordingly

Under what circumstances will gifts attract tax?

As much as most gifts do not attract tax, the donor of the gift may nonetheless find himself paying taxes on the gift he/she gives out. This happens if the value of the gift exceeds the exclusion amount and he happens to give it to a single recipient within a single year. Other gifts such as those directed towards the payment of medical bills and educational funds will not be limited and will not be taxable if paid directly to the institutions. Any gifts awarded to your spouse have no limits and are not taxed although there is a limit set for spouses who are not U.S citizens.

Discuss It!

dating sites said:

I havenât any word to appreciate this postâ¦..Really i am impressed from this postâ¦.the person who create this post it was a great human..thanks for shared this with us.

mcx freetips tips mcx zinc said:

innovation, the focus among manufacturers has shifted from adding features to optimising existing technologies to meet market needs.

clevachlor salt cell discountsaltcells said:

You needed an awesome tone of voice build in addition it appears to be fully particular.

oyigifts silicone watch said:

I'm getting excited about this kind of beneficial information of your stuff in the future. This information gives many information with which you can prize the certainty. I really take pleasure in your effort. continue within near future.

best paper writing site said:

When you choose to source for external paper writing, it is important to be cautious on various things that would make you know that the writing will be of quality. One of the things to look for and the main one is how expert the writers are which will guarantee you to getting quality work. Many have used the external writer in writing their papers and ended up being disappointed so itâs good to be cautious.

online nursing degree program said:

This posting is marvelous and what a fantastic research that you have done. It has helped me a lot. thank you very much. Feel free to visit my site

is mobdro safe said:

is mobdro safe Mobdro is such kind of platform where you can stream all the videos

Most Popular Articles
Most Popular Definitions
Daily Definition

Definition of the Day Economic Moat

Economic Moat ?- An economic moat is the advantage one business has over others in its field. It is a competitive edge that this one company will have over its competition. It may be the result of its name or some other aspect of their business that gives them the...

read entire definition




Home     About Us    Contact Us     Contribute     Sitemap


Copyright © 2009 TeenAnalyst.com