For those considering gifting money or property to another person, gift tax can come into play. Thankfully, two factors — the annual gift tax exclusion and the lifetime exclusion — often help keep the IRS out of most people's hair. See 2024 exclusion a
Payments Pursuant to a Divorce Settlement:Alimony is not a gift, but rathertaxable incometo the recipient (payee) and a tax-deductible contribution to thepayer. Property transfers within a year of a marriage's termination and related to that termination are deemed pursuant to a divorce decree an...
Each state has a maximum aggregate contribution limit per beneficiary as well as other limits to be aware of. Learn more here.
If you make large enough gifts to relatives or friends, you might owe the federal gift tax. Here are the basics on how the gift tax works.
A tutorial on the gift tax: what defines a gift and what transfers are subject to the gift tax, and how to calculate the gift tax.