Tag: gift tax

How Lifetime Giving Can Help Reduce Estate Taxes

Written by Paul Belfiore on October 13, 2023. Posted in Blog, Taxes.

Amherst, NH Family Plans Ahead for Their Children’s Inheritance

If you have a sizable estate, it can be beneficial to start giving it to your loved ones now, rather than waiting until you pass away. You can give any number of people up to $17,000 each year without incurring the gift tax. For couples this amount is $34,000. This can allow families to begin accepting their inheritance while their loved ones are still alive, receiving money without having to pay estate taxes. Another benefit of this type of lifetime giving is that you can have the joy of sharing your wealth with family now.

How Are Monetary Gifts Taxed?

Written by Paul Belfiore on July 14, 2023. Posted in Blog, Taxes.

Amherst, NH Couples Looks to Share Their Wealth with Their Children

Monetary gifts to any one individual that exceed the annual limit of $17,000 will be subjected to the gift
tax. This tax is typically paid by the giver, as opposed to the recipient. This $17,000 amount was set for
2023 but can vary from tax year to tax year. There is also a lifetime exclusion which is set at $12.92
million. Amounts gifted that exceed this amount given to the same person will likely be taxed. The gift
tax is only applicable on monies or assets that exceed the annual exclusion or lifetime exclusion. The tax
rate varies from individual to individual but can be anywhere from 18% to 40%.

How the Gift Tax Works

Written by Paul Belfiore on November 29, 2019. Posted in Blog, Taxes.

Amherst Resident Seeks Advice

Giving more than $15,000 in cash or assets to one person may mean that you have to a file a gift tax return at the end of the year. What qualifies as a gift by the IRS may surprise you, including paying for a child’s wedding, adding cash to an elderly family member’s bank account and even gifting a car. While all of these may not require you to pay a gift tax, you will need to file IRS Form 709 to fully disclose the information.