gift for her 50th image
CHARLES R
This is a gift and I would like to avoid the recepient having to pay a large amount of money. Any way to do it? I am reading that a gift under $50 is tariff-free.
Answer
Just wrap it up and take it to the Post Office and mail it.
Just wrap it up and take it to the Post Office and mail it.
Whats the best way to give someone $50,000 when it comes to taxes?
Joe
A hypothetical question completely, because I dont even have $2000 haha, but I dont understand how this works. If $50,000 was gifted, what is the gift tax percentage that would apply to it? Is there a more monetarily correct way of gifting $50,000 besides $13k per year?
Answer
There is no gift tax due until lifetime gifts exceed $1 million. If the total of the donor's estate and lifetime gifts is less than $1 million, there is no reason not to give $50,000 all at once.
If the estate plus gifts is more than $1 million, the donor should either use the annual $13,000 exclusion ($26,000 if married and electing gift-splitting), or in the case of payments for medical or educational expenses, those expenses can be paid by the donor directly with no gift tax or estate tax implications.
Also, if the donor is funding a qualified tuition plan (529 plan), five times the annual exclusion amount can be given ($65,000) and it will be deemed to be made over five years with no gift tax or estate tax implications.
There is no gift tax due until lifetime gifts exceed $1 million. If the total of the donor's estate and lifetime gifts is less than $1 million, there is no reason not to give $50,000 all at once.
If the estate plus gifts is more than $1 million, the donor should either use the annual $13,000 exclusion ($26,000 if married and electing gift-splitting), or in the case of payments for medical or educational expenses, those expenses can be paid by the donor directly with no gift tax or estate tax implications.
Also, if the donor is funding a qualified tuition plan (529 plan), five times the annual exclusion amount can be given ($65,000) and it will be deemed to be made over five years with no gift tax or estate tax implications.
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