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Southwest Portland Law Group's Guide to End of Year Gifting | Southwest Portland Law Group
Around this time of year, many people search for ways to give back to their communities, donate to local charities, or make gifts to their families and loved ones. Unfortunately, this altruistic intent can often leave people confused and overwhelmed with the tax consequences of their actions. In an effort to help you get the most out of this season of giving, we've put together the following guide to end of year gifting. Basic Gift Tax Rules (Federal) At the federal level, the annual gift exclusion amount is $15,000 for an individual ($30,000 for a married couple). This means that you can gift up to $15,000 to as many people as you'd like without it the IRS considering it a "taxable gift." What happens if you gift over the exclusion amount? The money you give in excess of the exclusion amount is considered a taxable gift. (e.g. I give you $16,000 in one year. I've made a taxable gift of $16,000- $15,000 or $1,000) How much tax do I owe on my taxable gifts? Probably nothing. When you