One of the most common questions on taxes is about gifting. A gift of money or property is not deductible on your tax return nor does the recipient report the gift as income. For 2016 the annual gift exclusion is $14,000 per person. Gift of a direct payment to providers for medical and education expenses do not count toward the annual gift tax exclusion limit.
If you have questions about gifting or need assistance with your tax return preparation call the accountants at Ketel Thorstenson with offices in Rapid City, Custer, Spearfish, and Williston. We are here to help. We are your “Friends for Life.”