IRS rules place a tax on transfers of money or property for no consideration, meaning a gift. As of 2015, the giver pays a tax if gifts to a single individual exceed $14,000 in a single year, either in cash or in thefair market valueof property. This exclusion amount applies on an ...
This concept is known as "gift splitting," and it allows the spouse who desires to make a tax-free gift (the "donor" spouse) to utilize the non-donor spouse's annual gift exclusion or lifetime unified gift and estate tax exemption (lifetime exemption). While this may appear relatively ...
At its simplest, “cost basis” is the original value of an asset for tax purposes. Stocks serve as an easy-to-understand example: If you purchase shares in a company, the price you originally paid for the shares is your basis. When you later sell them, comparing your basis to the pri...