Did you transfer your home or property to your children? Even if they weren’t technically gifted, did you “sell” them for a dollar? If you failed to file a gift tax return, there may be an unwelcome IRS letter arriving in your mailbox soon. The IRS is currently scrutinizing real estate transfers in 15 states – yes, New Jersey and rest of tri-state area included – with additional states likely to be added. It has found that 60-90% of gratuitous non-spousal real estate transfers were not reported on gift tax returns. Perhaps you are thinking “OK, so I’ll be more careful about this in the future but unless the IRS audits me I’m fine”-think again! If you make future taxable gifts requiring the filing of gift tax returns, those returns must disclose your prior gifts. If you do not include a gift from a prior year, the future return is false. [Read more…] about Forgot to File a Gift Tax Return? IRS Letter May Be On Its Way
Gift Taxes
Great Gift Idea: 529 College Savings Plan
‘Tis the season of giving, a time of deal-searching, as well as assessing what our loved ones could use. Here’s a gift you may want to consider: a 529 college savings plan. A 529 Plan is an education savings plan operated by a state or educational institution designed to help families set aside funds for future college costs. Every state now has a 529 Plan, and the funds can be used to meet costs of qualified colleges nationwide. Saving for college has never been more important, and a 529 Plan offers several significant perks: [Read more…] about Great Gift Idea: 529 College Savings Plan
Gift Tax Valuations enjoy new IRS Loophole
With the current low asset values and the estate/ gift- tax exemption slated to be reduced to $1 million in 2013 (from its current $5 million level), many are considering sheltering their assets by making large gifts. A prevalent concern is the valuation of these large gifts. What if the IRS challenges your estimate and wants more gift taxes? In Estate of Petter vs Commisioner, a popular technique to sidestep gift taxes was affirmed. [Read more…] about Gift Tax Valuations enjoy new IRS Loophole