A common question 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. A gift consisting of a direct payment to providers for medical and education expenses does not count toward the annual gift tax exclusion limit. Call the Ketel Thorstenson Tax Team with any questions, 605-342-5630.
Ketel Thorstenson, LLP, has over 55 CPA’s on staff and has been serving clients across the region since 1936. With offices in Rapid City, Spearfish, Custer, SD, and Gillette, WY, the firm offers a variety of services including tax planning and return preparation, audit services, QuickBooks, bookkeeping, payroll, business valuation and estate planning.