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Gift Giving



Debra Thompson

If you gave any one person gifts valued at more than $14,000, it is necessary to report the total gift to the Internal Revenue Service. You may even have to pay tax on the gift.

The person who received your gift does not have to report the gift to the IRS or pay either gift or income tax on its value.

You make a gift when you give property, including money, or the use of or income from property, without expecting to receive something of equal value in return. If you sell something at less than its value or make an interest-free or reduced-interest loan, you may be making a gift.

There are some exceptions to the tax rules on gifts. The following gifts do not count against the annual limit:

Tuition or medical expenses that you pay directly to an educational or medical institution for someone’s benefit

Gifts to your spouse

Gifts to a political organization for its use

Gifts to charities

If you are married, both you and your spouse can give separate gifts of up to the annual limit to the same person without making a taxable gift.

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Debra Thompson, CPA, PA is proud to serve the accounting, bookkeeping and tax needs of a wide variety of small businesses. As a local Northeast Arkansas CPA firm and experienced business advisor we are in the best position to offer candid financial advice that will help your business grow and prosper.She has come to be known in the Northeast Arkansas area.