| Isn't it disgusting to see how little of the paycheck | | | | important points taken from that publication: |
| is left over after taxes have been taken out? | | | | 1. The annual exclusion gift exclusion for 2009 |
| This is a great country, and it is nice to receive | | | | increased to $13,000. |
| the benefits of the fabulous infrastructure that | | | | 2. Most gifts are not subject to the gift tax and |
| makes our lives so pleasant. But sometimes, it is | | | | most estates are not subject to the estate tax. |
| just too much! | | | | 3. If you make a gift to someone else, the gift |
| As an accountant, I am always looking for legal | | | | tax usually does not apply until the value of the |
| ways to lower the tax burden of my clients. I | | | | gifts you give that person exceeds the annual |
| take courses and listen to very smart people tell | | | | exclusion for the year (this applies to the giver) |
| of the deductions that can be used that few | | | | 4. Generally, the person who receives your gifts |
| people know about. All of this is good, very good. | | | | or your bequest will not have to pay any federal |
| It helps to find these things out, but one day I | | | | gift tax or estate tax because of it. Also, that |
| ran into an amazing tax law. It took me a while to | | | | person will not have to pay income tax on the |
| digest the real impact this could have on my life. | | | | value of the gift or inheritance received. |
| Did you know that it is totally legal to receive a | | | | 5. Making a gift or leaving your estate to your |
| gift from somebody - up to $13,000 a year? | | | | heirs does not ordinrily affect your federal income |
| Did you know that that gift is totally tax free to | | | | tax return. |
| the receiver? You see, the taxes have already | | | | 6. You cannot deduct the value of gifts you make |
| been paid on that money - by the giver! So all | | | | (other than gifts that are deductible charitable |
| you have to do is find a group of people that are | | | | contributions). |
| willing to give you gifts of money - seriously. You | | | | 7. You make a gift if you give property (including |
| can read about the gift and it's relation to taxation | | | | money), or the use of or income from property, |
| in the IRS Publication 950. Introduction to Estate | | | | without expecting to receive something of at |
| and Gift Taxes. This publication can be had for | | | | least equal value in return. |
| free at the IRS website: Here are a few | | | | |