Tax Tips: Gift taxes
byApr 3rd 2008 3:00PM
Seriously, though... The rules go like this. In 2007, a person could give a gift of up to $12,000 per person, without having to report it to the IRS. Married couples can gift up to $24,000 to someone without having any gift tax consequences, because this essentially equals each of them giving the person $12,000.
The gifts included in this rule include money, property, or the use of property. Items that are usually excluded from the gifting rules include tuition paid directly to the school, medical bills paid directly to the provider, gifts to a spouse, gifts to a political organization, and gifts to charities. More information on gift taxes can be found in Publication 590, Introduction to Estate and Gift Taxes.
Tracy L. Coenen, CPA, MBA, CFE performs fraud examinations and financial investigations for her company Sequence Inc. Forensic Accounting, and is the author of Essentials of Corporate Fraud.