Slideshow Gift tax exceptions every adviser should know

Published
  • March 30 2012, 1:45pm EDT
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Gift Tax Exceptions Every Advisor Should Know

Not every gift is a taxable gift, according to the IRS. If you gave money or property to someone as a gift, the following gifts are not taxable gifts:

The Exclusion<br><br>

Gifts that do not exceed the annual exclusion for the calendar year (for 2011 and 2012, the annual exclusion is $13,000).

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The Gift of Learning<br><br>

Tuition you pay directly to an educational institution for someone.

The Gift of Health<br><br>

Medical expenses you pay directly to a medical institution for someone.

The Gift of Love<br><br>

Gifts to your spouse.

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The Gift of Your Point of View<br><br>

Gifts to a political organization for its use.

The Gift of Helping Others<br><br>

Gifts to charities.

Splitting That Gift?<br><br>

Then you and your spouse can make a gift up to $26,000 to a third party without making a taxable gift. The gift can be considered as made by one-half of you and one-half by your spouse.


But, if you split a gift, you must file a gift tax return (Form 709) to show that you and your spouse agree to use gift splitting. And, that's even if the split gift is less than the annual exclusion.