Reported 5 months ago
The article discusses the gift tax rules and limits set by the IRS for giving money to family members without incurring tax issues. For 2023, individuals can give up to $17,000 to each person without facing IRS consequences, with no immediate taxes until exceeding the lifetime limit of around $12 million. Gift tax rates range from 18% to 40%, and any excess gifts over the annual limit require filing a gift tax return. Strategies like gift-splitting with a spouse and special rules for contributions to tuition plans can help reduce the likelihood of owing gift taxes. Consulting with a financial advisor can provide guidance on navigating gifting strategies and tax implications.
Source: YAHOO