Q. How much can I gift to my children and not have to report anything?
A. In 2008 you can gift up to $12,000 to any individual and not have to report it on a Federal Gift Tax return. You don’t report anything and the recipient doesn’t report anything. If you gift appreciated property, the gift is valued at the fair market value on the date of the gift. The donee takes over your cost basis. There are special rules if the fair market value of the stock was below the cost on the date of the transfer, so be aware of that. In addition, gifts made directly to an institution for education or medical expenses on the behalf of an individual do not count toward the gifting rules. Consult your attorney for specifics on your situation if necessary.
IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advice contained in this communication, including any attachments, is not intended or written to be used, and cannot be used, for the purpose of 1. avoiding penalties under the Internal Revenue Code or 2. promoting, marketing, or recommending to another party any transaction or matter addressed herein.
Securities offered through Valley National Investments, Inc. - an independent broker/dealer and member FINRA and SIPC.
Friday, August 22, 2008
Friday, August 15, 2008
FAQ FRIDAY - August 15, 2008
Q. I have heard about a Veteran’s pension for widows. How do you qualify?
A. There are several factors that need to be met to qualify. Assuming you meet the qualification as a veteran’s widow eligible for the pension, there are still income tests. The following is from the Veteran’s Administration website http://www.vba.va.gov/.
How do I know if I'm eligible?You may be eligible if:
the deceased veteran was discharged from service under other than dishonorable conditions, AND
the deceased veteran served at least 90 days of active military service 1 day of which was during a war time period. If he or she entered active duty after September 7, 1980, generally he or she must have served at least 24 months or the full period for which called or ordered to active duty. (There are exceptions to this rule.)
AND
you are the surviving spouse or unmarried child of the deceased veteran,
AND
your countable income is below a yearly limit set by law (The yearly limit on income is set by Congress). Countable income is most income, including social security, interest, dividends and earnings. The yearly limit is set by law. There are exclusions to countable income for things like VA benefits and medical expenses. There may be an asset limitation as well. Contact your VA for more information if you feel you might qualify.
IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advice contained in this communication, including any attachments, is not intended or written to be used, and cannot be used, for the purpose of 1. avoiding penalties under the Internal Revenue Code or 2. promoting, marketing, or recommending to another party any transaction or matter addressed herein.
Securities offered through Valley National Investments, Inc. - an independent broker/dealer and member FINRA and SIPC.
A. There are several factors that need to be met to qualify. Assuming you meet the qualification as a veteran’s widow eligible for the pension, there are still income tests. The following is from the Veteran’s Administration website http://www.vba.va.gov/.
How do I know if I'm eligible?You may be eligible if:
the deceased veteran was discharged from service under other than dishonorable conditions, AND
the deceased veteran served at least 90 days of active military service 1 day of which was during a war time period. If he or she entered active duty after September 7, 1980, generally he or she must have served at least 24 months or the full period for which called or ordered to active duty. (There are exceptions to this rule.)
AND
you are the surviving spouse or unmarried child of the deceased veteran,
AND
your countable income is below a yearly limit set by law (The yearly limit on income is set by Congress). Countable income is most income, including social security, interest, dividends and earnings. The yearly limit is set by law. There are exclusions to countable income for things like VA benefits and medical expenses. There may be an asset limitation as well. Contact your VA for more information if you feel you might qualify.
IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advice contained in this communication, including any attachments, is not intended or written to be used, and cannot be used, for the purpose of 1. avoiding penalties under the Internal Revenue Code or 2. promoting, marketing, or recommending to another party any transaction or matter addressed herein.
Securities offered through Valley National Investments, Inc. - an independent broker/dealer and member FINRA and SIPC.
Thursday, August 14, 2008
FAQ Friday - August 8, 2008 (sorry for the delay!)
Q. I still own Series E and EE bonds. I bought them at a guaranteed interest rate. Right?
A. Per the U.S. Treasury website www.savingsbonds.gov, the interest you earn depends on when you bought the bonds. Check out their website for great information. In this case, you bought the bonds before 1995 and the rate …depends. From their website:
EE/E Bonds Issued before May 1995
This information applies only to Series E/EE bonds and savings notes issued April 1995 or earlier. The rate at which EE/E Bonds issued before May 1995 earn interest depends on their issue date.
Before reaching five years old, they earned interest on a fixed graduated scale, except for those bonds issued March 1993-April 1995 that earned a fixed rate of 4%.
Once your bonds were held for five years, they started earning interest at either guaranteed minimum rates or market-based rates, whichever produces the higher redemption value.
IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advice contained in this communication, including any attachments, is not intended or written to be used, and cannot be used, for the purpose of 1. avoiding penalties under the Internal Revenue Code or 2. promoting, marketing, or recommending to another party any transaction or matter addressed herein.
Securities offered through Valley National Investments, Inc. - an independent broker/dealer and member FINRA and SIPC.
A. Per the U.S. Treasury website www.savingsbonds.gov, the interest you earn depends on when you bought the bonds. Check out their website for great information. In this case, you bought the bonds before 1995 and the rate …depends. From their website:
EE/E Bonds Issued before May 1995
This information applies only to Series E/EE bonds and savings notes issued April 1995 or earlier. The rate at which EE/E Bonds issued before May 1995 earn interest depends on their issue date.
Before reaching five years old, they earned interest on a fixed graduated scale, except for those bonds issued March 1993-April 1995 that earned a fixed rate of 4%.
Once your bonds were held for five years, they started earning interest at either guaranteed minimum rates or market-based rates, whichever produces the higher redemption value.
IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advice contained in this communication, including any attachments, is not intended or written to be used, and cannot be used, for the purpose of 1. avoiding penalties under the Internal Revenue Code or 2. promoting, marketing, or recommending to another party any transaction or matter addressed herein.
Securities offered through Valley National Investments, Inc. - an independent broker/dealer and member FINRA and SIPC.
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