GIVING MONEY OR PROPERTY AWAY? Get Maximum Tax Deductions for Gifting
Gifting money or property away is a wonderful thing to do in order to help others. However, the IRS doesn't see it that way. That's right, gifting your property could throw you into some unexpected tax troubles.
It all comes down to how much you gift, and how much of a tax deduction you're allowed for the gift. However, take a look at how you can gift money and pay either no taxes or deduct the amounts from your gross earnings.
Give to your Loved Ones
• You can gift up to $13,000 per person to as many individuals as you like without incurring gift taxes if you wish to give money to your children, friends, or relatives.
• As a result, you won't have to record these monetary gifts on your tax return.
Reduce your assets to Reduce Taxes
• With giving, you reduce your assets and thus the taxes you would be paying on those assets.
• As you get older, minimizing your assets may become more essential, especially for your heirs who may be subjected to estate taxes.
Make a 529 College Savings Plan more solid.
• You can make a tax-free contribution of up to $65,000 to someone's 529 College Savings Plan. You must, however, disburse the funds over a five-year period.
• You must also refuse to give that same child any more money for the next five years, or you will have to declare and pay taxes on those new gifts to the IRS.
Make Charity Donations
• You only get your standard deduction if you don't itemize.
• If you itemize and give, however, you can deduct up to 50% of your gross adjusted income for the year. You may check our blog here about Charity Donations.
If you are looking for a Tax Advisor who can help you, then ACTvisory is here to help you. We offer professional tax advice to clients of all kinds and ranges. Our extensive knowledge and experience make us one of the best options when it comes to tax advisory services. You can contact Schedule FREE Consultation with us here.