CAN CHARITABLE CONTRIBUTIONS ALWAYS BE DEDUCTED FROM TAXABLE INCOME?

The gift has to be made to a qualified tax-exempt charitable organization and the charitable deduction has to be itemized. If your total itemized deductions are less than your standard deduction, your taxes won’t be reduced. If you or a family member need assistance with estate gift tax call me at (716) 333-5144.

CAN I AVOID THE GIFT TAX BY LOANING MONEY AT NO INTEREST AND THEN FORGIVING THE LOAN?

You must put the terms in writing, include a repayment schedule and charge a fair market interest rate. If you forgive the loan at any point, then it is considered a gift. If you or a family member need assistance with estate gift tax call me at (716) 333-5144.

DO I HAVE TO PAY A TAX ON GIFTS THAT I HAVE THAT ARE OVER $13,000 PER YEAR?

There is not a limit on gifts you can give to charity or your spouse without owing tax subject to several exceptions. The $13,000 a year is per person ($26,000 if you are married). You can give $13,000 to as many people as you wish each year tax-free. Even if you exceed your annual exclusion […]

DO I HAVE TO PAY TAX ON GIFTS THAT I RECEIVE?

No, the person who gives the gift may owe gift tax. Gifts from your employer may be taxable as income. Also, if you receive property that appreciated in value since the donor purchased it, you get the giver’s cost basis. If you receive over $100,000 in gifts from one or more foreign individuals, you must […]

WHAT IS AN ESTATE TAX CLOSING LETTER?

A closing letter is provided by the New York State Tax Department to certify no tax is due or to serve as a final receipt for the tax due. It is received after all processing is completed and should be kept as a permanent record. Most closing letters will take about 4-6 months from the […]