An Explanation of Gift Taxes
Each person may gift up to $13,000 per individual per year in 2010. A married couple may gift up to $26,000 per individual per year in 2010. These amounts are exempted gifts. Each person is allowed $1 million lifetime gifting.
If more than $13,000 is gifted to one individual in one year, the person making the gift (the donor) must file a gift tax return in that year. As long as he has reached his lifetime amount, no tax is due. The amount of the gift reduces the federal estate tax exclusion amount by the amount of the gift ultimately.
DISCLAIMER
The Blogs/Content on Webste/Downloads are made available by the lawyer or law firm publisher for educational purposes as well as to provide general information and a general understanding of the law. IT IS NOT PROVIDED AS SPECIFIC LEGAL ADVICE TO THE READER. By using the information provided on or via the Blogs/Content on Website/Downloads the reader understands that there is no attorney client relationship created between the reader and the attorney. The Blog/Content on Website/Downloads should not be used as a substitute for competent legal advice from a licensed professional attorney in the state of the reader.
