Tax Free Gift Limit
If you don't already know, I wonder if you'll be surprised to find out that giving isn’t always free! To be clear, the tax free gift limit only applies to gifts of cold, hard cash. At first this sounds preposterous. How dare the IRS tell me what I can and cannot do with my own hard-earned wealth.
Well, they do tell people exactly that all the time. In any given year, you can give away $13,000 tax free dollars. But get this: the IRS actually has a tax free gift limit on the amount of cash that you can give away in a lifetime.
Before you never forgive those guys at the IRS, keep in mind that this gift tax limit was created to help prevent people from dodging the estate tax. But they’re perfectly ok with you giving the gift of educational expenses (including relative educational expenses like rent and textbooks). Let’s take a look at some of the different rules concerning the gift tax:
- If you give away more than one million dollars in your lifetime, it will become subject to gift taxes
- Form 709 will be the tax form for you
- If you divvy out cash and property before your death, you and yours might save on taxes
- If you’re married, the tax free gift limit is $26,000 collectively for you and your spouse
There’s certainly more to know about this finicky financial topic. Good thing for sites like TurboTax Online, huh? Without signing up for anything at all, you can browse their website for all the tax information you need, no matter how convoluted and unique.
Plus, there are lots of other real taxpayers who help to fill in the blanks on the website via posting answers and questions. For more information on tax free gift limits and other tax questions, check out the TurboTax website today to see how they can help.