Many people aren’t aware of the fact that, in most situations, there really is no gift tax. Here’s why…
$14,000 Annual Exclusion
The federal government gives each of us an allowance to gift anybody $14,000 per year without incurring any gift tax. This $14,000/year replenishes every year, and it’s $14,000 per person. So, theoretically, I could gift every person that I know $14,000 today, and then another $14,000 next year and the year after, and there would be NO gift tax.
$5,490,000 Lifetime Exclusion
What most people don’t realize, is that there’s a second allowance of $5.49mm! In other words, let’s say that I want to give you $114,000. That’s $100,000 more than what I can give you out of my... Read More