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Remember to File Gift Tax Return by April 15

Remember to File Gift Tax Return by April 15Not only are individual income tax returns due on April 15 this year, but so is your gift tax return (Form 709), which covers taxable gifts made during 2014.

Any taxpayer who gave more than $14,000 ($28,000 if married filing jointly) in cash, property or other assets to anyone other than a spouse must report the gift on their return. If you received a gift, it is not considered income, so you do not have to report it as such on your return. But the person making the gift is responsible for paying any tax due.

Any gift above the $14,000 limit must be reported on Form 709, even if no tax is owed, so the IRS can keep track against your $5.43 million lifetime exclusion. You must also report any gifts that are not a present interest (when beneficiaries don’t get access until later), no matter how small.

Gift-splitting is available for married couples who combine their annual exclusions and lifetime tax-free amounts to give away up to $28,000 to whoever they want without having it count against the $10.86 million lifetime exclusion for married couples. Usually, they must file a gift tax return and consent on each other’s return to gift-split. Gifts to a spouse do not need to be reported unless your spouse is not a U.S. citizen.

Recipients of gifts from family or friends do not have to report these gifts as income; however, sometimes a gift is subject to the gift tax. But it will be the giver, not the recipient, who is responsible for paying any taxes on that gift.

A qualified Florida estate planning attorney can help you plan for the meaningful gifts you want to provide for your family in a way that can also help you save on taxes; to learn more, contact our Florida law firm for more information.

Categories: Tax Planning
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The Dorcey Law Firm, PLC - Fort Myers Attorney
Located at 10181 Six Mile Cypress Pkwy, Suite C, Fort Myers, FL 33966
Phone: (239) 330-6674
Local Phone: (239) 418-0169
Website: http://www.dorceylaw.com
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