Dec
14
Potential Changes to the Gift Tax
A number of tax provisions are scheduled to expire at the end of 2012, including the highly favorable treatment of federal estate and gift taxes. If you are considering a gift that could be subject to the gift tax, this may be a good time to examine your options.
Limits and Exclusions
In 2012, you can give up to $13,000 ($26,000 with your spouse) in cash or income-producing assets such as stocks and bonds to as many people as you wish without any gift tax liability. Excluded from the tax are gifts of any amount to your spouse (as long as he or she is a U.S. citizen), gifts to a qualified charitable or political organization, and payments of tuition or medical expenses that are made directly to an educational institution or medical provider on behalf of someone else.
Limits and Exclusions
In 2012, you can give up to $13,000 ($26,000 with your spouse) in cash or income-producing assets such as stocks and bonds to as many people as you wish without any gift tax liability. Excluded from the tax are gifts of any amount to your spouse (as long as he or she is a U.S. citizen), gifts to a qualified charitable or political organization, and payments of tuition or medical expenses that are made directly to an educational institution or medical provider on behalf of someone else.
