What Is The Annual Gift Tax Exclusion?
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Transcript of What Is The Annual Gift Tax Exclusion?
WHAT IS THE ANNUAL GIFT TAX EXCLUSION?
FederalTRANSFER TAXES
There is an estate tax in the United States, and there is
also a gift tax
These taxes are unified
AND RATEExclusion
There is a unified lifetime gift and estate tax exclusion
In 2014 the exclusion is $5.34 million
This is the amount that you can transfer tax-free
The maximum rate is 40 percent
Gift Tax Exclusion
Annual
In addition to the unified lifetime exclusion, there is also an annual
gift tax exclusion
You could use this exclusion to give tax-free lifetime gifts
If you stay within the annual exclusion amount, these gifts would not reduce the amount
of your available unified lifetime exclusion
$14,000 Per Person
The annual gift tax exclusion is $14,000 per person in 2014
You can give up to $14,000 within a calendar year to any number of
gift recipients tax-free
To reiterate, this exclusion sits apart from the unified lifetime
exclusion
EstateTAX EFFICIENCY
The annual gift tax exclusion can be used to gain estate
tax efficiency
You could transfer a significant amount of money tax-free if
you use this exclusion over an extended period of time
GIFT TAX EXCLUSIONS
Additional
In addition to the annual gift tax exclusion and the unified lifetime
exclusion, there are two additional exclusions
There is an educational exclusion that allows you to pay school
tuition for others tax-free
You can use the medical exclusion to pay medical
expenses for other people in a tax-free manner
LEARN MORE ABOUT FEDERAL TRANSFER TAXES
If you would like to learn more about federal transfer taxes,
contact our firm to schedule a consultation
Click to visit:
organizeyourassets.com