Sharing Your Wealth With Loved Ones: What you need to know about a Gift Tax Return.

You’ve worked very hard to build your wealth, and you want to share it with your loved ones.

But your scared... You don’t want pay taxes on those gifts.

There are a lot of misconceptions about giving gifts, so let's clear a few of them up.

Misconception #1: Gifts are taxable

For 99.9% of us, gifts are not taxable.  The IRS sets a lifetime exclusion limit that we can give away without being taxed.  For 2024, this amount Is 13.6 million.  Most of our clients will not give away 13 million over their life and therefore will NOT have to pay taxes on the gifts they give.

Note: They may need to file a Gift Tax Return, but will not pay taxes.

 Misconception #2: Only the wealthy have to file Gift Tax returns.

This is not true.

For 2024, you can give up to $18,000 per person and not have to file a return.

The $18,000 is the IRS 2024 annual gift limit.  This amount changes every year.  For 2025, the amount is $19,000.

This is not just for the wealthy.

Let’s talk about how the Gift Tax Returns are handled.  There is a long exemptions list, however, the most common are:

• Medical

• Tuition

• Spouse

• Charitable Organizations

• Political Organizations

You file a Gift Tax Return with the IRS just like you file your Individual Income tax return.

This return is informational and the IRS recognizes that Jane Doe gave a gift of $100,000 in 2024.

You will never hear anything more, nor will the person you are giving the gift to.

Let’s talk about some strategies when it comes to giving gifts. 

Example: If you have a grown son married with 2 kids and a spouse: you can give each of them $18,000 = 72k and NO tax return is required. If you are married, your spouse can do the same.  You can give almost $150k without having to file a return.

Think of splitting the years.  You can give the maximum annual gift limit at the end of one year and again at the beginning of the next.

If you want to pay for someone's medical expenses, or perhaps tuition, pay the institution directly to avoid filing a tax return.

 We know this can be confusing and overwhelming.

That’s why we’ve made it our mission to help you unravel it all.

Taking you From confusion to clarity, strengthening your financial health and well-being.

Accountabilities has you covered.