Search Site
Menu
Holiday Gifting

Holiday Gifting

The holiday season is fast approaching and for many people, this is a time of exchanging gifts with family or charitable giving.  Those who choose to make large gifts to individuals during this time should be aware of the annual exclusion amount set by the IRS.  The annual exclusion is the amount in cash or other assets, you can give every year to as many individuals as you like, without incurring the gift tax (up to 40%). The annual exclusion for 2014 is $14,000. It is periodically adjusted for inflation, in $1,000 increments, and hasn’t been raised since 2013. We do not anticipate that it will increase in 2015.

For gifts that exceed this annual exclusion amount, those will trigger mandatory filing of IRS Gift Tax Form 709 and possible payment of gift taxes.  However, gifts that exceed the annual exclusion count against what is commonly referred to as the “lifetime exemption” or the “estate tax exemption”, depending on the context.  The key item to understand is that once you have exceeded the annual exclusion ($14,000), there is currently a $5.34 million limit on the total amount you can give away – either during life or through your estate plan. If you exceed the limit, you (or your heirs) will incur the up to 40% tax liability. Even if you don’t exceed the limit while you are alive, your lifetime gifts will reduce how much you can pass tax-free through your estate plan.  The basic exclusion is indexed for inflation and is expected to be $5.43 million for 2015.

A check to a favorite charity is also a regular giving tradition.  In order to properly qualify for the tax deduction, you must give to a qualified organization.  If you receive a benefit because of your contribution such as merchandise, tickets, or other goods, you can deduct only the fair market value of the benefit.  Regardless of the amount, to deduct a contribution, you must maintain a bank record or a written communication from the organization containing the name of the organization as well as the date and amount of the contribution.

For rules on what constitutes a qualified organization, you can review IRS Publication 526, Charitable Contributions, at https://www.irs.gov/publications/p526/index.html.  You should also plan to discuss your gifting with both your estate planning attorney and your CPA.  These professionals can assist you in optimizing the benefits for your holiday generosity.

Wendy Lambie

Phone: 281-367-1222

Fax: 281-210-1361

[email protected]

Leave a Reply

Your email address will not be published. Required fields are marked *

Contact a Dedicated Texas Business Lawyer To Schedule a Consultation
Call 281-367-1222 or contact us online to schedule a meeting.

Strong In Action

  • Spring 2019

    The Strong Firm represents borrower in $42.3 million HUD construction loan for multifamily real estate development in Walton County, Florida.

    Read More
  • Spring 2019

    The Strong Firm acts as legal counsel for borrower in $32.1 million HUD construction loan for multifamily real estate development in Conroe, Texas.

    Read More
  • Spring 2019

    The Strong Firm aids borrower in $31.7 million HUD construction loan for multifamily real estate development in Nueces County, Texas.

    Read More
  • Spring 2019

    The Strong Firm represents borrower in the refinancing of a $3.57 million commercial mortgage-backed security for a commercial office facility in Montgomery County, Texas.

    Read More
  1. 1
  2. 2
  3. 3
  4. 4
  5. 5
  • Peer Rated 2019 Award

Recent Blog Posts

The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) and the Bankruptcy Provisions Therein

Last Friday, Congress passed and President Trump executed the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act” of “Stimulus Bill”) granting a significant and admirable level of support to the U.S. economy that has been left reeling by the one-two punch of the COVID-19 pandemic and OPEC’s… posturing.  While
Read More
The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) and the Bankruptcy Provisions Therein

Combating Consumer Scams Amid COVID-19

As Texans, we have weathered our share of crises and disaster, although, here in southeast Texas, it’s usually in the form of a hurricane. Times of crisis and uncertainty, such as the current COVID-19 outbreak, tend to bring out not only the very best in people, but also the very
Read More
Combating Consumer Scams Amid COVID-19

Considerations for Commercial Property Owners and COVID-19

The novel coronavirus (COVID-19) has wreaked havoc on the world and our nation, casting widespread uncertainty and hardship in seemingly every corner of the economy. With many commercial tenants in dire financial straits – particularly those who rely upon customer interaction (i.e. retail, restaurant, and entertainment) – commercial landlords are
Read More
Considerations for Commercial Property Owners and COVID-19

Small Business Owner’s Guide to the CARES Act

The U.S. Senate Committee on Small Business & Entrepreneurship has put together the below summary of programs and assistance available to small business owners and certain nonprofit organizations through the Small Business Administration (“SBA”) under the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”).  The following information is current
Read More
Small Business Owner’s Guide to the CARES Act
  • Video Vault


    Watch videos done by our legal team to gain a better understanding of your legal needs. Our lawyers give video insight into areas such as Real Estate, Business Law, Mergers & Acquisitions and much more.

Pay Retainer Online

Use our easy-to-use and secure online payment feature.
We accept all major credit cards.

Pay Your Retainer

Contact us

Quick Contact Form