When dealing with taxes, you are sure to come across plenty of exemptions, deductions, and new laws. There is a reason that there are professionals out there to make sure that you have all of your ducks in a row, so to speak.
Generally, you will have to pay a gift tax on gifts that you have given; be it money or property. There are however tax free gifts. The laws for these change every year and they vary from state to state. You will want to do some research of your own; or better yet, hire a professional tax consultant to keep you as up to date as possible on what gifts are taxable and what gifts are not.
In 2008 the reportable gift amount was $12,000 in cash. If you have given or received more than that amount is must be included in your taxes. It does not count as income. These details get so strict, you are far better off hiring someone to handle these issues for you.
You can find a variety of helpful websites that can help you understand what gifts are taxable and which ones are not. These sites are dedicated to doing just that; helping you. You do not want to fear an irs audit and end up owing the government a ton of money, or any money for that matter. You need to know about all laws about giving and receiving taxable gifts; whether it is money or property.
It is also a good idea to not only do some research on these websites, but to hire a tax specialist to help you will all of the details. You want to end up with the government owing you money rather than having it the other way around. Hiring a great tax specialist is the best way to avoid owing money to the irs. The irs is definitely not a good place to owe money too. They make sure that they get their money, and so should you.
Before giving gifts, you should know what are the laws on tax free gifts. Whether you have done the research yourself, or you have hired someone to worry about it for you, you need to know what you will and will not be taxed on. Taxes are confusing for most of the general population, and having someone else worry about it for you is a great idea. When anything has to do with taxes, know what you are dealing with before you do anything.