Gift Taxes

Many financially secure individuals choose to make cash gifts to their children at different points in their lives. If calculated correctly, cash gifts to children can be made in such a way that…

Children may own bank and investment accounts in their own names, completely separate from their parents. At times, parents may want to make a gift to a child, and transfer money into that account. By…

Giving a home to your children can be an effective way to help get them started in life or it can help you get rid of a home that you no longer need. When you gift a house to your children, it will…

The federal government allows you to give substantial gifts to your children and grandchildren without paying gift tax. You have the right to give each person a gift of up to a certain amount per…

When passing along gifts to an heir or relative, there are precautions you can take to avoid the federal gift tax, which is applicable to transfers that take place in the state of California. Consider…

If you decide to earn extra money as a surrogate mother in California, you cannot avoid paying tax on that income. The IRS and the California Franchise Tax Board are not concerned with how you earn…

A taxpayer may want to give gifts to his heirs as an important estate planning tool. However, at times, a taxpayer may want to just spread some wealth for no particular reason. A person can make a…

Economists frequently refer to the TANSTAAFL rule -- there ain't no such thing as a free lunch. Although gifts may seem like an economic free lunch, the IRS has a different way of looking at it. In…

The IRS requires you to include all money and the value of property your employer provides you, including employee referral bonuses, in your taxable wages. Unless there is a specific exception to this…

When a grandmother can no longer take care of herself, a caregiver may be required to provide assistance. Instead of paying a professional caregiver for help, you may want to do the job yourself.…

From time to time, family members may assist one another with living expenses, educational expenses, moving expenses or debt repayment via a personal loan or a monetary gift. If the recipient is not…

The short and simple answer is that there is never an "income" tax on monetary gifts, but the more complicated answer is that there is a "gift" tax on monetary gifts of a certain amount. The…

The reception of money from a relative can be confusing, especially when you are trying to decipher whether to include the amount as income and pay taxes on it. The Internal Revenue Service requires…

Writing a will gives the ability to choose what happens to your assets after you die. Often, grandparents leave money to their grandchildren to pay for educational expenses or to provide a cushion for…

Parents give money to their children for a variety of reasons; children living at home need spending money and may eventually receive tuition and other funds for college. Later, many adults give money…

Although you never owe any taxes on money you receive as a gift, the person making the gift might have to pay a tax. That depends upon the amount of the gift as well as your purpose for receiving it.

Your life insurance policy protects your family from your financial debts. The death benefit paid out to your child, if you name him as your beneficiary, is generally income tax-free. But, there may…

The good news is that the IRS has absolutely no authority over the lenders whose business it is to decide whether or not you are eligible to buy a home. The bad news is that the money you owe the IRS…

When you have a large amount of money in an individual retirement arrangement (IRA) and you decide that you will not need all of it, you may wish to give a portion of the money to charity. When you…

Giving money to your family members generally has no affect on your income taxes; however, you may end up paying federal gift tax. Whether you must pay a gift tax depends on the amount of money you…

Raising children is one of the most expensive endeavors you will ever undertake, and the federal government offers several tax breaks to help lighten the load. These are designed to lower the amount…

The Internal Revenue Code has numerous provisions regarding taxes applied to transfers of wealth to others. While there is no provision specifically regarding giving gifts to one's children, children…

As a parent, you may be interested in giving money to your child to help him out from time to time. While this is generous, you could have to worry about paying taxes on your gift to the Internal…

The federal gift tax was originally created to prevent people from avoiding the federal estate tax. Though the gift tax does not play a major role in the economy, it can be very expensive for those it…

A parent may want to give her child the house she owns when she moves to a smaller place or a retirement home, but both parties should be alert to tax consequences. Homes are considered taxable gifts…

The Internal Revenue Service does not recognize giving money to a child as a tax deduction. In fact, under certain circumstances, the taxpayer pays taxes on the amount that is given. This is known as…

Children often receive cash gifts from parents, friends and other family members for special occasions like birthdays, Christmas and graduations. Cash gifts and gifts of physical goods and assets like…

Monetary gifts, unless for a charitable contribution, are not typically tax deductible. The Internal Revenue Service defines a gift as a transfer of property, which includes cash, to an individual.…

Property taxes help pay for government services. Procedures in place to collect back taxes vary by state and county. When selling your house with back taxes due, the proceeds from the sale pay off the…

As a homeowner, you are privy to extreme tax breaks from the federal government while you live in your home, as well as after you sell your home. In addition to tax and interest deductions, the…

The IRS taxes certain types of gifts. Some types of gifts cannot be taxed no matter how much you give, while others are subject to an annual exclusion. If the exclusion is exceeded, you will have to…

Generally, the federal tax code taxes the donor of the gift, and not the recipient of a gift. Tax lawyers and accountants can spend their entire careers on learning the intricacies of the federal gift…

The gift tax may make it seem as if the Internal Revenue Service has a thing against generosity, but gift tax regulations are implemented largely to keep parties from giving their assets to others…

When you give a gift, you must consider two possible tax consequences. First, if the value of the gift exceeds your annual gift tax exclusion, you may have to file a gift tax return and pay gift tax…

Every year, the holidays pose a conundrum for business owners. Many would like to show their appreciation for clients, vendors and employees, but they do not want to cause any unwanted tax headaches…

If your parents are thinking about giving you a monetary gift, or have already done so, they may be responsible for paying gift tax. However, your parents can provide you with the money as a tax-free…

Though uncommon, it is possible for an employer to write a bad check. This unfortunate situation is more common for a small company that writes standard business checks to workers instead of official…

If you are fortunate to be grated a bonus in addition to your salary, you must count the extra compensation as ordinary income and are subject to the same state and federal income taxes as your annual…

Mutual funds are commonly used to grow a person's living estate. They can be purchased in taxable or tax-deferred structures. General brokerage accounts are taxable while retirement savings accounts…

Cleaning out your closets and cabinets can provide more than just extra space in your home. If you donate items to a local charity instead of tossing them in the dumpster, it may reduce your tax bill…

You can use 529 plans (also called Qualified Tuition Programs) to save for your children's college education. You do not have to report contributions to a 529 plan to the Internal Revenue Service. 529…

If you intend to make a gift to your family, you may become subject to federal gift tax, depending on the value of the gift. Gift tax, however, is only triggered under certain circumstances. Gift tax…

Christenings and baptisms mark one of the first occasions when parents formally introduce their child. In baptisms, this refers to the religious ceremony introducing a newly born child to the church…

Giving tax free gifts to children is beneficial to both parents and their offspring. The children benefit because they receive non-taxed monetary gifts, and parents benefit by reducing their taxable…

Giving away too much money or property could cost you in federal gift taxes. Fortunately, the person receiving the gift will not have to pay taxes, but as the gift giver you may be liable for a…

The federal laws governing the taxation of gifts generally only affect a minority of wealthy Americans. However, because the laws governing the gift tax are extremely volatile, you can utilize many…

The federal gift tax was set into place to discourage citizens from giving away money to their heirs before death to avoid paying estate taxes. Married individuals may gift one another an unlimited…

Gift taxes are a confusing area of tax law in the United States. When you give or receive a financial gift, you might think that you owe some type of tax liability. Understanding how gift tax laws…

A tax deduction, also known as a tax write-off, is an amount of money that is deducted from the total tax liability of an individual or organization. Under the U.S. tax code, taxpayers can deduct…

Monetary gifts to children are rarely tax deductible; rather, large gifts may be subject to a gift tax. However, in certain situations, the government may treat your "gift" to a child as income for…

When you receive a gift from a family member or friend, you don't have to pay taxes on that gift. When a "gift" comes from your employer, however, you just might. The IRS guidelines for employee gifts…

Monetary gifts are common between family members and friends, but the Internal Revenue Service (IRS) imposes a gift tax on large monetary gifts. Small monetary gifts such as a $50 gift from a…

In the United States, the Internal Revenue Service (IRS) allows taxpayers to make annual gift transfers without incurring gift taxes. However, the IRS seeks to ensure that large gift transfers are…

In most cases, you should not expect to pay taxes on gifts you received for your wedding. The Internal Revenue Service imposes taxes on substantial monetary gifts on the donor, not the recipient.…

Employers often reward employees for an array of achievements from perfect attendance to meeting a sales goal. The determination of whether a reward is taxable to the employee is on a case-by-case…

Ordinarily, federal income tax returns reflect income earned by individuals, but there are other taxes that must be paid to the Internal Revenue Service. The IRS even collects taxes when someone gifts…

It is better to give than to receive. But the IRS makes giving a lot less fun over a certain amount. Congress has long imposed limits on transfers of property without fair value compensation. Except…

Your father may owe gift tax when giving you a house, but you don't owe any taxes except possibly when you sell the house. There are exceptions permitting both of you to avoid owing tax. The path for…

Estate planning is a very complex subject, and the tax laws regarding estates are equally complex. Given these circumstances, many financial experts suggest giving away at least some of your estate…

Gift-giving occasions are a call for celebration, but selecting the right gift can be the source of much frustration and uncertainty. Cash is one gift option that's easy to give and even easier to…

The Internal Revenue Service allows for tax-free annual gift transfers. The IRS, however, wants to ensure that these gift transfers are not an attempt to subvert the estate tax. As a result, donors…

When individuals begin to start their adult lives, many parents enjoy providing a large monetary gift to their children. Gifts can be given for situations, such as a down payment on a home or for the…

Certain employee gifts are considered compensation by the Internal Revenue Service (IRS) and are subject to normal payroll taxes. While gifts in general are not taxable, employee gifts are considered…

The New York Gift Tax law was repealed in 1999. Since then, New Yorkers have not paid state tax on gifts.

Employees often receive additional benefits and gifts from employers that never show up on W-2 forms. Some of these common gifts need not be taxed at all, providing they fall within IRS guidelines.

529 college savings plans allow for significant up-front contributions, in contrast to other types of college savings plans. You can contribute up to five times the allowable gift exclusion amount…

Inheritance and gift taxes are limited to income totaling more than an amount specified by the federal government each year. According to InfoPlease.com, the Economic Growth and Tax Relief…

Although the IRS does not concern itself with minor gifts to friends or families, it does take the opportunity to heavily tax those gifts that exceed a certain limit. The gift tax is a progressive…

Although a gift of any amount may be given to anyone, general law regarding gift tax must be followed. Gifts are taxable and must be reported on gift tax returns if they are not for exempt amounts or…

The law on gift taxes can often be confusing, in part due to the way the Internal Revenue Service defines a gift. In IRS terms, a gift sometimes includes additional forms of income or loans that one…

Gifting money or property is an area of tax law fraught with myths. Some people believe they can avoid paying taxes on money if they give it as a gift. Others believe no one pays taxes on this money.…

It's better to give than to receive, but the IRS since 2007 has made that Biblical dictum a lot harder to claim on your taxes. The most stringent new regulation requires you to keep records of what…

The Internal Revenue Service defines a transfer of money or property as a gift when the donor receives nothing or a price below market value in return. Unless a special arrangement is made, the donor…

When giving or receiving a large gift it is important to understand the Internal Revenue Service's rules regarding gift taxes. The rules are fairly straight forward, but there are gifting limits to be…

Most gifts made are after taxes, meaning you must still pay income tax on that portion of your income you gave away as a gift. For gifts of cash or property, whether it can be deducted from your…

Though you will never be taxed when you receive a gift, there are instances when the government mandates you pay taxes on a gift you give. Most often, this will be when you give a large sum of money;…

Most grandparents take considerable delight in making financial gifts that help secure their grandchildrens' futures or help with current expenses. When giving money, consider options carefully, as…

If you gave someone money as a gift, then you may have to file it on your taxes. To file gift money on your taxes, you must complete a gift tax form. To qualify you must have given at least $13,000 to…

Though it's nice to help family members in financial need, or anyone else that you might give money to, it can be shocking to discover that gifting money can trigger a gift tax from the IRS. Luckily,…

Gifting assets to children can reduce both income and estate taxes. However, failure to do so correctly can result in unnecessary gift or estate taxes. Fortunately, this mistake can be easily avoided…

When you give someone money or property without expecting something in return, you sell property at a significant loss or you extend an interest-free loan, it may be considered a gift. Gifts may be…

Gifting money can be a good way to give assets to those you love while lowering your overall estate, thus lowering the estate transfer taxes passed on to your beneficiaries. You're allotted $12,000…

Whenever a significant amount of money or property changes hands, the IRS wants its cut. If you have recently given someone a large gift or are thinking about it, know that under the gift tax, you may…

If a gift of cash is under $12,000 then it does not have to be reported to the IRS and can be tax free and if married it can be up to $24,000. Give the gift of cash and avoid being taxed on it with…

A gift is anything transferred from one person to another without fully paying the amount the asset is worth. An individual may gift to another up to a given annual exclusion amount without paying…

If you give valuable gifts to another person, you may have to pay taxes on value of the gift. There are ways in which you can avoid the gift tax and still give to those you love.

It's tax season again! Get tips for filing your gifts this year in this free video clip about tax deductible items.

Gift giving is one method people use to reduce the amount of money in an estate and to reduce tax debt on heirs when they pass on. By following established gift-giving rules and regulations, you can…