The federal gift tax applies to all gifts that you make during the course of your lifetime. Whether a gift will be taxable for gift tax purposes depends on three things. Find out what they are and if you have made any taxable gifts.
If you are concerned about owing back taxes from all of those birthday gifts that you have given over the years, we have some good news for you. There are some gift tax exclusions that you can utilize to give tax-free gifts. One of them is the annual gift tax exclusion. Each calendar year, you can [ ] The post Free Report: What are the Gift Tax Exclusions appeared first on Vermillion Law Firm LLC.
To avoid the estate tax, you may naturally consider lifetime gift giving. This was something that people used to do shortly after the estate tax was enacted in 1916, but we have had a gift tax in place continuously since 1932, so this loophole is long closed. The gift tax and the estate tax are unified, so the exclusion applies to lifetime gifts along with the estate that will be passed on after you are gone. The estate tax is only applicable on