[Wowlace]

With regard to gift tax returns. I understand that there is a filing requirement for gifts over $14,000. If you give a gift, let’s say, of $50,000, that would mean that only $36,000 is taxable? But then, the Applicable Credit Amount would reduce any tax owed? (up to $2,045,800 lifetime). So, basically most people file gift tax returns and don’t end up paying tax? You only would if it exceed the ACA base?

[evesocal]

That is right, a great number of gift tax returns incur no tax because of the credit. But when the donee dies, all the credit that was used up by the prior gifts reduces what is left for his or her estate tax return.

B: 75
R: 80
A: 77
F: 81
Ethics: 84, 92 and done!
Licensed in California

[evesocal]

That is right, a great number of gift tax returns incur no tax because of the credit. But when the donee dies, all the credit that was used up by the prior gifts reduces what is left for his or her estate tax return.

B: 75
R: 80
A: 77
F: 81
Ethics: 84, 92 and done!
Licensed in California

[Wowlace]

Thank you evesocal!!

[Wowlace]

Thank you evesocal!!

[Author]

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