2011 Gift Tax Exemption

It's a new year, and it is always wise to make sure you know what the federal gift tax exemption is. For 2011 it is $13,000. That means any one person can give another person $13,000 or less and not have to file a gift tax return.

Gift tax issues creep up on people who add their kids names to the family cabin or home, or a a bank account. When you add a name, you are likely making a gift of half the asset. And if it exceeds the exemption, a gift tax return may be needed. Check with your CPA to be certain.

The Wall Street Journal ran a nice article discussing the federal gift tax exemption, click if you want more details.