If you have made considerable gifts to individuals, be sure to remember to file your gift tax returns. The IRS requires gift tax returns for gifts over $15,000 ( or $30,000 if married) to any individual, for the year that the gift was made. This rule also applies to gifts you have split with your spouse, and gifts of future interest. The lifetime estate and gift tax exemption amount is currently $12.06 million. Just because you file a gift tax return does not mean you will pay gift tax. You will need to file a gift tax return if you’ve made a substantial gift, even if you haven’t met the exemption limits. There are additional circumstances for which gift tax returns are not required. Speak with your attorney for further guidance on gifting and gift tax returns.
-Emily A. Helmick, Esq.