When you have been given a generous gift, there are often tax repercussions to consider. It is noteworthy to point out that Gift Tax applies to the giver, not the receiver. A donation, or present, valued at over $15,000 requires a Gift Tax Return, according to current tax regulations. To ensure proper tax planning, be sure to consult with an experienced Roseville tax return attorney today.
An Overview of Gift Tax in California
- You can give $15,000 to as many people as you want without having to file a gift tax return or pay any tax, according to current tax regulations.
- Gifts are not deductible on your income tax returns.
- If gifts are in excess of $15,000, a gift tax return should be filed. There will be no tax incurred, unless your total lifetime gifts exceed $11.4 million, according to current tax regulations.
- Gifts of property must have appraisals documenting their gift tax value. This value is the equivalent of the current fair market value.
- Gifts are coordinated with your estate tax exemption.
When a Gift Tax Return Lawyer is Necessary
An attorney can help you figure out the potential tax consequences of a gift. You will need to consult with an experienced tax return attorney if any of the following statements apply:
- The gift you are giving is property, not cash.
- The value of the gift exceeds $15,000.
- The person you are giving the gift to is not a US citizen.
- You have a history of making large gifts.
- You have a large estate (greater than $11.4 million) and need to coordinate your estate and gift planning to minimize estate tax.
- You have been contacted by the IRS regarding gifts made in past years.