Sentences with phrase «annual federal gift tax»

A contribution to a 529 plan account is treated as a completed gift from the donor to the designated beneficiary of the account and qualifies for the annual federal gift tax exclusion ($ 15,000).

3 If you make the five - year election to prorate a lump - sum contribution that exceeds the annual federal gift tax exclusion amount and you die before the end of the five - year period, the amounts allocated to the years after your death will be included in your gross estate for tax purposes.

A contribution to a 529 plan account is treated as a completed gift from the donor to the designated beneficiary of the account and qualifies for the annual federal gift tax exclusion of $ 15,000.

The annual federal gift tax exclusion allows you to give away up to $ 14,000 in 2017 to as many people as you wish without those gifts counting against your $ 5 million lifetime exemption.

Not exact matches

The Internal Revenue Service (IRS) allows individuals to gift property without federal tax consequences as long as it falls within the guidelines for the annual gift exclusion.

There is no minimum annual contribution, and individuals can contribute as much as $ 14,000 a year (per beneficiary) and not incur federal gift taxes.

This election allows you to make a lump - sum contribution up to five times the annual exclusion amount of $ 75,000 per beneficiary in one year and elect to treat the contribution as if it was made ratably over five years avoiding federal gift tax liability, as long as you make no other gifts to the same beneficiary for the next five years.

The federal estate and gift tax exemption is doubled to about $ 11.2 million ($ 22.4 million for married couples) in 2018, with annual inflation adjustments.

A very common strategy with ILIT's, is to use your annual gift tax exclusion to effectively remove assets from your estate and the trustee can then use the funds to purchase a life insurance policy for the sole purpose to pay your federal estate tax bill.