Calculating The Amount Of Taxes For Monetary Gifts<\/strong><\/p>\n\n\n\n

Now that you understand how filing for gift tax works, what is the limit you\u2019re allowed to give before it needs<\/em> to be taxed? You\u2019ll be glad to know that the limit has already increased at the time of writing this guide, going up from $16,000 last year to $17,000 this year. If you\u2019re married, you and your spouse don\u2019t need to share this limit. You each get to gift the full amount as individuals, essentially doubling the money that you are able to give.<\/p>\n\n\n\n

As far as tax percentage goes, that depends on the individual. Gift tax can range anywhere from 18% to as high as 40%. This percentage can make a huge difference which is why it\u2019s always best to consult a financial advisor before following through with your monetary gift.<\/p>\n\n\n\n

As The Gifter: How To Gift Money Safely<\/strong><\/p>\n\n\n\n

Nothing is more frustrating than spending many years planning for your loved one\u2019s future just to find out that you\u2019ve been going about it the wrong way. For instance, it\u2019s not a good idea to stockpile large amounts of money over a long period of time to gift all at once, lest you lose a good chunk of it to taxes. If you plan on giving away the money anyway, it\u2019s best to gift the maximum amount before reaching your limit each year to negate the need for paying gift taxes entirely.<\/p>\n\n\n\n

As The Recipient: The Best Uses For Your Monetary Gift<\/strong><\/p>\n\n\n\n

If you\u2019re on the receiving end of a monetary gift, you might be excited to spend it immediately however you wish. Although that money is technically yours to do with as you please, it pays to be smart and vigilant. You can use that money to build a respectable investment portfolio so you can watch your savings grow. For guidance on how to properly invest your money, reach out to your local and trustworthy financial advisors!<\/p>\n\n\n\n

Gift Smart. Consult A. Roberts & Associates!<\/strong> Avoid making any wrong moves that could affect your taxes! Contact A. Roberts & Associates today<\/a> to schedule a consultation so you can be smart ab<\/p>\n","protected":false},"excerpt":{"rendered":"

It seems there\u2019s always a catch when handling substantial sums of money, and it can be easy to trigger flags when you didn\u2019t mean to. If you plan on distributing monetary gifts anytime soon, it can help to educate yourself to avoid any accidental run-ins with the IRS. Learn more about paying taxes on monetary […]<\/p>\n","protected":false},"author":1,"featured_media":534,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7],"tags":[],"class_list":["post-533","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-federal-and-tax"],"acf":[],"yoast_head":"\n