This is the time of the year when people will be exchanging gifts with each other. Many of these gifts will be very small, but for very large gifts it might be important to look into any tax regulations that might apply. The law currently allows an individual to give another person up to $14,000 without a tax being placed on the giver or receiver, and couples can give up to $28,000 to each person. Average people of ordinary means usually do not face tax issues with gifts. There are many people who use gifting as a way of reducing the size of their taxable estate. This column discusses many of the different gifting techniques that people can use to reduce their tax liability. It is a good idea to meet with a competent professional estate planner for more personalized information about ways of reducing tax liabilities through gifting.
See Jeff Brown, Smart ways to gift money during the holidays, CNBC, December 14, 2015.
Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.
