Articles

5 Tax-Free Gifts to Give by Ken Strauss, CPA/PFS, CFP


Posted on November 27, 2015

With the season of giving upon us, individuals should remember that giving money and property can yield significant tax and estate-planning benefits. In fact, there are several gifts you can make anytime throughout the year without incurring federal gift tax. They include the following:

  1. An unlimited number of gifts that are less than the annual exclusion amount of $14,000 per gift from individuals or $28,000 from married couples in 2015 and 2016,
  2. Gifts to a spouse, including legally married same-sex spouses,
  3. Gifts of tuition or medical expenses paid for someone else directly to an educational institution or medical provider,
  4. Gifts to a political organization, and
  5. Gifts to qualified charities, which provide donors with the added benefit of a charitable deduction on their federal income tax.

When making any significant gift of money or assets, individuals should seek the counsel of an experienced CPA and financial advisor to ensure that the transfer is structured to be both tax-efficient and in line with one’s overall estate-planning goals.

About the Author: Kenneth J. Strauss, CPA/PFS, CFP, is a director with the Taxation and Personal Financial Planning practice of Berkowitz Pollack Brant, where he works with entrepreneurs and multi-generational family businesses to develop tax-efficient estate, succession and financial plans.   He can be reached in the CPA firm’s Fort Lauderdale, Fla., office at (954) 712-7000 or via email info@bpbcpa.com.