Tax Planning for Those Year-Ending Family Gifts

By Julian Block 1996, United Features Syndicate Inc. | St Louis Post-Dispatch (MO), November 11, 1996 | Go to article overview

Tax Planning for Those Year-Ending Family Gifts


Julian Block 1996, United Features Syndicate Inc., St Louis Post-Dispatch (MO)


For many individuals, a key part of their investment and estate planning is to write year-end checks for gifts to family members. Here are some reminders to help put your tax planning in perspective for 1996 and beyond.

Unlike charitable contributions, you get no income-tax deductions for gifts to individuals. Nevertheless, these gifts can be advantageous because they shift investment income from yourself to family members in lower brackets, as well as reduce the value of your assets subject to estate taxes at your death.

As part of your planning, you need to consider gift taxes when you make sizable lifetime transfers of money or other assets. Fortunately, gift taxes present no problems for most people. Usually, it is possible to get around these taxes, courtesy of annual exclusions of $10,000 ($20,000 when you are married and your spouse joins in, even if all of the gift comes from your assets) for gifts in any single year to any one person. These annual exclusions permit you to pass along as much as $10,000 (or $20,000) a year to each of as many of your relatives or friends as you like, without payment of gift taxes or using up part of your exemption of $600,000 from gift and estate taxes. Use it or lose it: You are able to take advantage of the exclusions each year, even if you write checks or transfer other assets to the same recipients, only if you make those gifts by Dec. 31. Miss that deadline and you lose out on your exclusions for that year. For instance, you are not allowed to carry forward any unused portion of exclusions for 1996 to 1997 or any subsequent year. Caution: If you intend to give by check close to the end of 1996, remind the object of your generosity to deposit your check in sufficient time for it to clear your bank by Dec. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

Tax Planning for Those Year-Ending Family Gifts
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.