If you have recently given a gift, it is critical to be aware of how this can affect your finances when tax season comes. The gift tax is imposed on property that is transferred from one party to another for nothing, or less than the full fair market value in return. This tax is paid by the party giving the gift, not the recipient. The gift recipient is not required to claim the gift as income on their taxes.
Most gifts are taxable, with the exclusion of the following gifts:
- gifts not exceeding $15,000
- medical expenses or tuition paid on behalf of another
- gifts that you give to your spouse
- gifts that are given to a political organization
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Contact our office at (469) 567-3017 or fill out an appointment request form to speak with a member of our team and discuss our gift tax services, today!