- Gift tax is paid by the giver, not the recipient. If Uncle Bill decides to give you $20,000, you do not need to pay any tax on it. It would be Bill’s responsibility to report that gift to the Federal Government and to pay the taxes.
- In 2019, the annual exclusion limit is $15,000. This means that Bill could give you up to $15,000 in 2019 without having to file anything.
- This exclusion applies to EACH spouse, so Bill and his wife could each give a combined total of $30,000 before they have to file anything.
- If you do go over the exclusion limit, the gift tax return is due by April 15th of the following year.
- Even if you have to file, don’t worry. Most people don’t end up paying any gift tax. The lifetime exemption on gifts is 11.4 million dollars. If you gift over that, then you have additional tax.
If you need a gift tax return prepared, or if you want to talk with a Clergy Financial Pro Advisor about gift and inheritance planning, visit our website at https://www.clergyfinancial.com/resources/proadvisor/ or call (763)-425-8778 today.
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Clergy Financial Resources serves as a resource for clients to help analyze the complexity of clergy tax law, church payroll & HR issues. Our professionals are committed to helping clients stay informed about tax news, developments and trends in various specialty areas.
This article is intended to provide readers with guidance in tax matters. The article does not constitute, and should not be treated as professional advice regarding the use of any particular tax technique. Every effort has been made to assure the accuracy of the information. Clergy Financial Resources and the author do not assume responsibility for any individual’s reliance upon the information provided in the article. Readers should independently verify all information before applying it to a particular fact situation, and should independently determine the impact of any particular tax planning technique. If you are seeking legal advice, you are encouraged to consult an attorney.
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