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 2017 the annual gift exclusion was $14,000 per person. For 2018, this amount increases to $15,000. A gift over this amount simply uses a piece of your lifetime exemption. A gift consisting of a direct payment to providers for medical and education expenses does not count toward the annual gift tax exclusion limit. However, with a doubling of the estate tax exemption to $11,200,000 per person, the annual exclusion amount now has little meaning to most people.
As always, check with the tax professionals at Ketel Thorstenson CPAs for these and other tax matters because each situation is different. Don’t navigate the difficult and ever changing tax codes and legislation on your own. KTLLP CPAs and tax professionals receive advanced training and continuing education all year long to keep our service on the forefront of the tax industry.