Gift Tax Preparation

Gift tax preparation can get complicated, which is why we can help you navigate through the process. If you or your spouse gave third party gifts valued over the annual qualifying amount:

• You must report the total amount of gifts to the IRS.
• You may have to pay tax on the gifts.

The person who receives your gift doesn’t have to report it to the IRS or pay gift or income tax on its value. Taxable gifts include money and property, which includes the use of the property.

There are some exceptions to the tax rules on these gifts that don’t count against the annual limit:

• Tuition or medical expenses you pay directly to an educational or medical institution for someone’s benefit
• Gifts to your spouse
• Gifts to a political organization
• Charitable donations

If you would like to sit down with us to discuss how we can help you with your tax and accounting needs, contact us for a free consultation.