gifting this year

Submitted by Douglas Bauerband on Mon, 2014-04-28 17:19

a. what is the gift tax for 2014? 14k or $14,500

b. if a person gifts to his family this year, lets say now in April and then passed away in June this year…am i correct in stating that the gift amounts would not be included in his inheritance or estate tax returns? (Meaning his estate would not pay taxes on the gift amounts…he is well over the NJ limit of 675k but under the fed of 5M)

thank you,
Douglas



Submitted by mk foss on Mon, 2014-04-28 18:29

  1. The annual exclusion is $14,000 for 2014. It goes up in $1,000 increments so it would never be $14,500.
  2. I have no opinion about state inheritence tax matters but a gift made in $14,000 or less would not be included in Form 706 and would not be reported on a Form 709 that is required to be attached to Form 706. If there are other gifts to the same person this year, the gifts must be reported but there is no estate tax inclusion for the first $14K. If the gift was of a hard-to-value asset such as a partial interest in a business a gift tax return might be advisable and would be attached to Form 706 but again the gift would not be included.

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