IRS TAXES CHRISTMAS GIFTS!
The holiday season is a time of giving. However, don’t be overly generous with your friends and family or the IRS may tax your beneficent gifts. The Internal Revenue Code limits 2014 gifts in most circumstances to $14,000 per person. Gifts in excess would be taxable to the donor unless a gift tax return is filed. Spouses are considered separate individuals for gift tax purposes so a mother and father can give each of their children $28,000 this year without tax ramifications. Tuition, medical expenses, gifts to a spouse and political contributions are likewise tax free gifts. So certainly be generous this holiday season but make sure to check with your attorney or accountant if you intend to use giving as part of your holiday estate planning. Happy Holidays.