“How much can I give someone as a gift before I have to file a gift tax return”? This is the typical question I get asked a lot in my years being an Accountant. 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). A married couple that are Citizen’s have unlimited exclusion and could transfer any amount of gifts to the other spouse without worrying about having to file a gift tax return. There are restrictions if it is a non-citizen spouse and in that case the gifts are limited to $139,000, which went up a little from last year.
Therefore, to give one example: You could give a gift of $13,000 a year each to your daughter, son, mother, a friend, a cousin, your Accountant…without having to file a gift tax return. Your spouse could do the same to the same people if you wish in the same year. Therefore, if you both gave gifts to the same people, they will receive a gift of $26,000 in that year and they can still receive gifts from more people within that year as long as it’s different people giving them the gifts. If you go over the $13,000 a year limit per donee, then a gift tax return will be necessary to file….and our firm will be able to handle that for you.
Please contact us if you have any questions or concerns regarding Gift Tax or any other questions that we could help you with.
Tax season is starting soon, please call us to schedule your appointment or to make it more convenient for you, you could mail, e-mail, fax or drop off your taxes. As always, we appreciate your business and greatly appreciate when you refer us to your family and friends.