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Richard
Richard, Tax Attorney
Category: Tax
Satisfied Customers: 53949
Experience:  29 years of experience as a tax, real estate, and business attorney.
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What are the rules of gifting? I can gift $11,000 - 12,000

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What are the rules of gifting? I can gift $11,000 - 12,000 annually to each of my children which I should be able to deduct yearly and not be taxed on it. My accountant says I can deduct it after I die. I say that won't benefit ME. My CPA does nothing at all with it. How can it be deducted when I die if nobody is documenting it yearly? Please send me the rules of gifting.
Submitted: 4 years ago.
Category: Tax
Expert:  Richard replied 4 years ago.

Good afternoon. Each donor can give $13,000 per year per person under the annual gift exclusion. In addition to that, each person has a $5,000,000 lifetime exemption....which means a person can give a cumulative amount of up to $5,000,000 in gifts without incurring gift tax....the donor must file a gift tax return to let the IRS know how much of the lifetime exemption is being used, but there will be no gift tax until cumulative gifts have exceeded the $5,000,000. Any portion of the $5,000,000 that is unused at death is exempt from estate tax.

 

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