Gifts toIRS-approved charities, to your spouse (assuming they are a US citizen), to pay another person’s medical expenses, and to cover another person’s tuition expenses are all exempt from the gift tax and from the annual limit.
Basis step-up is an inarguably powerful tool for tax planning. But high net worth taxpayers and couples should take a step back and evaluate their estate plans in a holistic way. This is because strategies that reduce income tax can sometimes have federal estate tax consequences, and vice ver...
citizens, gifts to your spouse are unlimited and exempt from tax. If your spouse is a non-citizen, there is a 2024 gift tax exemption of $185,000—but anything above that amount is taxable. How many people can you give to without owing any tax? This is a great question—because it ...
There may be exceptions even in these cases, so if you’re making a large gift, it’s probably best to check with a professional to make sure there are no tax implications. For instance, if you and your spouse are U.S. citizens, gifts to your spouse are unlimited and exempt from tax...