Plan now for year-end gifts with the gift tax annual exclusion
- ByPolk & Associates
- Sep, 06, 2023
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Now that Labor Day has passed, the holidays are just around the corner. Many people may want to make gifts of cash or stock to their loved ones. By properly using the annual exclusion, gifts can reduce the size of your taxable estate, within generous limits, without triggering any estate or gift tax. The exclusion amount for 2023 is $17,000. It covers gifts you make to each recipient each year. Therefore, a taxpayer with 3 children can transfer $51,000 this year free of federal gift taxes. If the only gifts made during a year are excluded in this way, there’s no need to file a federal gift tax return. Contact us for the most tax-effective way to give large gifts to loved ones.
Selling your home for a big profit? Here are the tax rules
- ByPolk & Associates
- Sep, 06, 2023
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In recent years, many people have seen their home values rise. Be aware of the tax implications when selling. If you’re selling your principal residence, you can exclude up to $250,000 ($500,000 for joint filers) of gain, if you meet certain requirements. For example, you must have owned the property for at least two years during the five-year period ending on the sale date. If you sell your main home, and you qualify to exclude up to $250,000/$500,000 of gain, the excluded gain isn’t subject to the 3.8% net investment income tax. However, gain that exceeds the exclusion limit is subject to the tax if your modified adjusted gross income is over a certain amount. Questions? Contact us.