Uncle Sam's New Year's Gift to You

Uncle Sam is raising the annual exclusion for gifts starting in 2013.

Starting in 2013, the annual exclusion amount from gift taxes will increase from the current $13,000 per year to $14,000.

That’s a $14,000 gift per person, per calendar year. In other words, parents can give each child $28,000 per year ($14,000 x 2).

You can give away more than that if you are so inclined to do so, but after the $14,000 annual threshold, you’ll start cutting in to your lifetime exclusion amount. This year the lifetime exclusion amount is $5,120,000, but don’t memorize that number because it expires at the end of 2012 and is likely to be changed as part of the “fiscal cliff” discussions in Congress.

©2012 Wittenburg Law Office, PLLC. All rights reserved.

Disclaimer: This Blog is for informational purposes only and is not to be construed as legal advice. If you have questions, please seek the advice of an attorney.  An attorney-client relationship is not formed by reading this Blog. If you are interested in Wittenburg Law’s representation of you, you must contact Wittenburg Law for a determination of whether your matter is one for which Wittenburg Law is willing and able to accept representation of you.

Bonnie Wittenburg, Wittenburg Law Office, PLLC, Minnetonka, MN  bonnie@bwittenburglaw.com  www.bwittenburglaw.com 

This post is contributed by a community member. The views expressed in this blog are those of the author and do not necessarily reflect those of Patch Media Corporation. Everyone is welcome to submit a post to Patch. If you'd like to post a blog, go here to get started.


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