Money Matters: Gifting
In this edition of Money Matters, we are talking about gifting. That is where one family member basically can give to another family member. What are some of the restrictions and what you have to do before you start paying taxes on those gifts.
Going back when I started my career, you could gift $10,000 to anyone you wanted, to any number of units. So, if you had three kids you could give each child $10,000 and if you are married you could give $10,000 and so could your spouse. So, you could double it up. Now that's been indexed and raised and so in 2017 the number was $14,000 and then now in 2018 the number you are able to give is $15,000.
Does it have to go to a family member?
No, you gift to anyone.
But, it's really not as big deal as it use to be because the federal estate tax law. That has increase so now if you go beyond, lets say you were where you wanted to give $100,000 to one of your children, you could. It says you can give $15,000 there after that you could just file a gift tax return and use part of your exemption which is not over $11,000,000 for 2018 so it's a formality you file a gift tax return.