Last Minute Moves for 2009 – Gifting

December 3, 2009 | Subscribe to our RSS Feed

Over the next 2 weeks, we’ll be posting some last minute tips for you for closing out the year. These moves can help you for 2009 and beyond. Stay tuned -

Gifting
Make year-end gifts. A person can give any other person up to $13,000 for 2009 without incurring any gift tax. The annual exclusion amount increases to $26,000 per donee if the donor’s spouse consents to gift-splitting. Anyone who expects eventually to have estate tax liability and who can afford to make gifts to family members should do so. Besides avoiding transfer tax, annual exclusion gifts take future appreciation in the value of the gift property out of the donor’s estate, and shift the income tax obligation on the property’s earnings to the donee who may be in a lower tax bracket (if not subject to the kiddie tax).

Contributed by Sam Cohen
Questions?
sam.cohen@glassjacobson.com