Wednesday, December 14, 2011

Lending and Gifting Between Family Members

Do I have to pay tax for receiving or giving gifts?
The donor of the gift is liable for gift tax if the value of the gift is greater than the annual exclusion of $13,000.00.  The donor may gift $13,000.00 each to his or her son, daughter, nephew, grandchild, and next door neighbor tax free.  Husband and wife, as donors, may collectively gift double the amount, $26,000.00, to each respective donee tax free.