Contact UsWhat is the amount or money I can give tax free in 2012? What will that amount be on January 1, 2013?
I want to transfer some of my wealth to my three children and wondered what the difference will be.
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Tax Professional Answers
Manasa Nadig
The Annual Gift Tax Exclusion has not gone up from 2011, it will remain at $13,000 a year per donee (person who receives the gift) for 2012. The exclusion for a Married couple will be $26,000 a year per donee. If a taxpayer goes beyond the exclusion for a donee, then a gift tax return needs to be filed (Form 709).
Although the Annual Gift Tax Exclusion is indexed for inflation, unfortunately we will not know the amounts for 2013 till later this year.
For amounts given in excess of the annual exclusion amount, every individual has a lifetime exclusion amount, against which the excess gifts are credited. For 2012, the lifetime exclusion amount is $5,120,000. This lifetime exclusion amount is one of the tax law provisions that is set to expire at the end of 2012, along with the other “Bush Tax Laws”.
Please see a CPA/ EA or an Attorney to determine what your unique Tax situation would be.
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602 weeks ago
Although the Annual Gift Tax Exclusion is indexed for inflation, unfortunately we will not know the amounts for 2013 till later this year.
For amounts given in excess of the annual exclusion amount, every individual has a lifetime exclusion amount, against which the excess gifts are credited. For 2012, the lifetime exclusion amount is $5,120,000. This lifetime exclusion amount is one of the tax law provisions that is set to expire at the end of 2012, along with the other “Bush Tax Laws”.
Please see a CPA/ EA or an Attorney to determine what your unique Tax situation would be.