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2011 Inheritance and Gifts

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    2011 Inheritance and Gifts

    I just want to be sure that I have the correct information:

    2011 Estate Exclusion is $5,000,000.

    2011 Gift Tax Exclusion limit is $5,000,000 versus the $1,000,000 in prior years.

    2011 Gift Tax Exclusion is $13,000 per person.

    If a taxpayer gives an individual a gift with a FMV of over $13,000, a gift tax return must be filed. The excess amount over $13,000 can be applied to the $5,000,000 limit. So there would be no gift tax due.

    Just being sure before I advise a client on a large gift that is being considered to his child.
    Jiggers, EA

    #2
    correct

    I agree with all statements.

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      #3
      Unified

      Don't forget that the Estate and Gift tax exclusion are again unified into one Gross lifetime amount. (very general terms of the change).
      AJ, EA

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