Estate PlanningChp5GiftTax.docx - Estate Planning u2013...

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Estate Planning – Chapter 5 – Gifts: Review sheet Estate Planning – Chapter 5 – Gifts: Review sheet The gift tax is a tax on the transfer of property by one individual to another while receiving nothing, or less than full value, in return. The tax applies whether the donor intends the transfer to be a gift or not. The gift tax applies to the transfer by gift of any property. You make a gift if you give property (including money), or the use of or income from property, without expecting to receive something of at least equal value in return. If you sell something at less than its full value or if you make an interest-free or reduced-interest loan, you may be making a gift. Three categories: Gifts that do not require a gift tax return : 1. Gifts ≤ $15,000 per donee per year – 2019 Annual Exclusion Amount is $15,000 (indexed for inflation) 1. present interests only 2. no limit on number of donors 2. Gifts of tuition paid directly to the institution 3. Gifts of medical expenses 4. Support 5.

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