A. When you make a substantial noncash gift, a professional appraisal can reduce the chances that the IRS will challenge your gift tax return, thus decreasing the possibility of unplanned tax liability. Three-year statute of limitations If you make a substantial noncash gift — either outright or in trust — IRS regulations provide for a […]
A. An intrafamily loan rather than a gift can be attractive if you’re not ready to part with your wealth — for example, because you’re concerned about having enough money to fund your retirement or you feel that your children aren’t ready to handle the responsibility. Intrafamily loans allow you to provide family members with […]
De Minimus Benefits Any property or service with a relatively low value is excluded from tax on employees – including owners and partners. This includes occasional meals or supper money, local transportation when working late, holiday or birthday gifts, occasional sporting event tickets and traditional awards.
Business Gifts Deduction The tax law puts tight wraps on your ability to deduct year-end holiday business gifts to customers and clients. GIVE TO COMPANIES, NOT INDIVIDUALS Your deduction for business gifts is limited to $25 per recipient. But that restriction applies to gifts to people, not companies. So you can give a company […]
529 Plans & Medicaid Assets THE PROBLEM: When a grandparent contributes to a 529 plan for a grandchild’s education, the grandparent – not the grandchild – is the legal owner of the account. If the grandparent applies for Medicaid, are the 529 funds counted as assets? Also, are such contributions construed as gifts or transfers […]