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The gift tax made simple

“You can spread the gift over 2019-2023 without incurring any gift tax and without reducing your $11.400 million lifetime gift tax exemption or your $11.400 million estate tax exemption” writes Aol Staff for aol.com. Among others, the following types of gifts are exempt from the federal gift tax so you can make unlimited gifts in these categories without any gift tax or estate tax consequences and without having to file gift tax returns: If you make a taxable gift (one in excess of the annual exclusion), you must file Form 709: U.S. Gift (and Generation-Skipping Transfer) Tax Return.That way no gift tax is due, and the gift doesn’t reduce the $11.400 million lifetime gift tax exemption in effect for 2019 or the estate tax exemption for you or your spouse.The first thing to know about the federal gift tax is that gift givers—not gift recipients—have to pay it.Making a split gift allows you to take advantage of your annual gift tax exclusion plus your spouse’s exclusion for a gift that is made entirely by you.
 
Source: aol.com



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