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Generally, the one giving a gift pays the gift tax. Not the recepient.
Who pays the gift tax?
The donor is generally responsible for paying the gift tax. Under special arrangements the donee may agree to pay the tax instead. Please visit with your tax professional if you are considering this type of arrangement. What is considered a gift?
Any transfer to an individual, either directly or indirectly, where full consideration (measured in money or money's worth) is not received in return. What can be excluded from gifts?
The general rule is that any gift is a taxable gift. However, there are many exceptions to this rule. Generally, the following gifts are not taxable gifts. # Gifts that are not more than the annual exclusion for the calendar year. # Tuition or medical expenses you pay for someone (the educational and medical exclusions). # Gifts to your spouse. # Gifts to a political organization for its use. In addition to this, gifts to qualifying charities are deductible from the value of the gift(s) made.
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What is the maximum amount of a monetary gift for 2009?
You can give as much as your heart desires. It's your money, you can do with it what you want. (Don't send it to Cuba, Iran, or North Korea.) If you are wondering what the gift tax exclusion for 2009 is, it is $133,000 to a non-resident alien spouse and $13,000 to anyone else who is not a spouse. The maximum amount that a married couple can gift to each individual is $26,000 (2 x $13,000.) The entire gift to a charity or political organization is exempt. Payments of tuition (not room and board) and medical expenses are completely exempt if made directly to an educational institution or medical services provider. Payments to a US Citizen or resident alien spouse are also completely exempt.
Who has to file a gift tax return?
A person making a gift that is more than their annual exclusion must file the Form 709 and pay the necessary taxes on the non-exempt gift.
How do you avoid gift tax?
You avoid gift tax if you make gifts that are either exempt or less than the annual exclusion (which is $15,000 per person in 2012).
Do you pay income tax on a gift from your parents?
There is no income tax due on gifts, and there will be no gift tax unless the gift exceeds $12,000 per individual. (A married couple can each give $12,000 - so they could give their son $24,000 and their daugher-in-law $24,000 for a total of $48,000 gifted in each tax year.)
What is the 2009 tax exempt gift amount?
For 2009. Citizen spouse: unlimited. Non-citizen spouse: $133,000 All others: $13,000
What are popular gift ideas for newly married couples?
The best place to start with gift ideas for a newly married couple is with the couple's gift registry. In this way, one knows exactly what the couple wants. Other popular gift ideas include gift cards to good local restaurants, dance lessons, and gift certificates for maid service.
Is a gift expected for the renewal of wedding vows?
No, the gifts are given as a boost to the new couple. You are not obligated by any means to provide a gift to a married couple that is renewing their vows.
What is the maximum amount of a monetary gift for 2009?
You can give as much as your heart desires. It's your money, you can do with it what you want. (Don't send it to Cuba, Iran, or North Korea.) If you are wondering what the gift tax exclusion for 2009 is, it is $133,000 to a non-resident alien spouse and $13,000 to anyone else who is not a spouse. The maximum amount that a married couple can gift to each individual is $26,000 (2 x $13,000.) The entire gift to a charity or political organization is exempt. Payments of tuition (not room and board) and medical expenses are completely exempt if made directly to an educational institution or medical services provider. Payments to a US Citizen or resident alien spouse are also completely exempt.
Name a gift that soon to be married couple might register for?
Dishes Silverware toaster blender furniture
Renewing wedding vows - is gift expected?
* Yes, if a married couple are renewing their vows then a gift should be given unless the invitation has stated that no gifts be given.
What is the proper form of address for a wedding gift?
The correct way to address a gift is "Mr. & Mrs. James Smith". The couple is already married so it is proper to address it this way.
best gift for marriage couple?
best gift for marriage couple
Is a wedding gift expected at a social for the couple?
A social for an engaged couple or already married couple? If it's an engaged couple (such as an engagement party), I'd bring something small, like a bottle of wine and a congratulations card. If it's an already married couple, I would bring a gift if I did not bring one to the wedding (it's okay to send gifts up to one year after the fact). But, if we're talking about just some kind of get together, I'd do a very small host/hostess gift (flowers, stationary, kitchen utensil, etc...)
Who are the protagonist and antagonist in the gift of the magi?
The protagonists in "The Gift of the Magi" are James and Della Young, a young married couple. There is no clear antagonist in the story; the couple's struggles with poverty and their desire to give each other meaningful gifts drive the plot.
Who has to file a gift tax return?
A person making a gift that is more than their annual exclusion must file the Form 709 and pay the necessary taxes on the non-exempt gift.
Do you send a gift for wedding 3?
* It doesn't matter if a person gets married two or eight times, it is etiquette to bring a wedding gift which is usually left at the reception on a special table for gifts. If there is just the wedding and no reception or it's a reception at someone's home then leave the gift there for the couple.
How do you avoid gift tax?
You avoid gift tax if you make gifts that are either exempt or less than the annual exclusion (which is $15,000 per person in 2012).
