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.
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