How To Determine If Your Gift Is Taxable

The IRS has some information regarding gifts you make to others. The general rule is that gifts you make are taxable with the following exceptions:

• Gifts that do not exceed the annualu exclusion for the calendar year, $13,000 for 2011 and 2012. Married couples can choose to have gifts made one-half by each spouse which allows for a total gift of up to $26,000. Gift-splitting requires a gift tax return to be filed. Use Form 709.


• Tuition or medical expenses you pay directly to a medical or educational institution for someone.


• Gifts to your spouse.


• Gifts to a political organization for its use.


• Gifts to charities.

The eight tips the IRS recommends can be found here.

If you would like to consider the tax aspects of making a gift, please contact me.

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