What are the guide lines for gifts to family to reduce tax liability?

Question by Warden Willie: What are the guide lines for gifts to family to reduce tax liability?
Family members would be my children and grandchildren.

Best answer:

Answer by Kutekymmee
anything under $ 10,000 per year is a non taxable gift.
anything over that is taxable.

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2 thoughts on “What are the guide lines for gifts to family to reduce tax liability?

  • November 25, 2013 at 12:42 pm
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    Gifts to family members are not deductible for income tax purposes. A gift has no affect on your income tax liability.

    Gifts up to $ 12,000 per year per person are exempt from the gift tax.

    And if gifting to minors, you may want to consult the Uniform Gift to Minors Act. I do not know what it covers but I believe there is an issue if the gift is over a certain dollar amount. Not a tax liability but an access restriction.

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  • November 25, 2013 at 12:59 pm
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    Gifts to family members won’t reduce your tax liability. If you give more than the annual exclusion amount ($ 12,000 for 2006) you may have to PAY gift taxes.

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