Making sense of illness, death and taxes through the eyes of Attorney and Author, Melinda Gustafson Gervasi
Tuesday, October 16, 2012
2013 Gift Tax Limits
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Recent news reports show that the amount any one person can gift to another in a calendar year will increase from $13,000 in 2012 to $14,000 in 2013. The increase is a result of cumulative indexing. Married couples can each give a gift, meaning a total of $28,000 could be gifted to a child in the calendar year. One reminder, the gift is considered to have been made when the check is cashed. So, if a check is written on December 23rd, but not cashed until January 2nd, the IRS will consider the gift to have been made in the year corresponding with January, not December. This could become an issue if the practice were repeated, but the check cashed on December 30th. Both would be viewed as occurring in one calendar year, and then gift tax issues arise.
Please remember, a blog post is no substitute for an attorney of CPA. Please consult with a professional in your area for the latest information and advice specific to your situation. And thanks for reading!