Archive for May, 2011

When Is a Gift Taxed?

Gifts under $13,000 (2011 figure) per year/per person plus any payments made directly for tuition to an educational institution or for medical expenses  are excluded from any calculation of gift tax.

For taxable gifts over the tax free amount, a federal gift tax return must be filed (Form 709) by April 15 of the year following the year the gift was made.

Gift tax is only payable if and when an individual’s lifetime taxable gifts exceed the gift tax exclusion amount, currently $5M.