Tax Tip: Gift Taxes
Gifts include money and property. If someone uses property and the owner of the property doesn’t expect to receive
The limit for gifts given to spouses who are not U.S. citizens has been increased to $117,000 this year.
Other changes occurring this year affecting gift taxes include: filing Form 8892, Application for Automatic Extension of Time to File Form 709 and/or Payment of Gift/Generation-Skipping Transfer Tax. Predeceased parent rules used to determine an individual’s generation assignments for certain transfers occurring on or after July 18, 2005 have been amended. The lifetime exemption for generation-skipping transfers (GST) remains $1.5 million.
Tax preparers should also be aware that husbands and wives cannot file a joint income tax return. Community property given as a gift is considered to be two gifts, each representing half the value of the property, given by both individuals.
Finally, only individuals are required to file gift tax returns. Individual beneficiaries, partners and stockholders may be liable for GST if their portion of a gift given by a trust, estate, partnership or corporation exceeds the $11,000 value limit.