Search
Close this search box.
Home / Articles / Why you should make annual exclusion gifts before year end

Why you should make annual exclusion gifts before year end

December 17, 2014

Share:

The 2014 gift tax annual exclusion allows you to give up to $14,000 per recipient tax-free without using up any of your lifetime gift tax exemption. If you and your spouse “split” the gift, you can give $28,000 per recipient.

The gifted assets are removed from your taxable estate, which can be especially advantageous if you expect them to appreciate. That’s because the future appreciation can avoid gift and estate taxes.

The exclusion is scheduled to remain at $14,000 ($28,000 for split gifts) in 2015. But that’s not a reason to skip making annual exclusion gifts this year. You need to use your 2014 exclusion by Dec. 31 or you’ll lose it.

The exclusion doesn’t carry from one year to the next. For example, if you don’t make an annual exclusion gift to your daughter this year, you can’t add $14,000 to your 2015 exclusion to make a $28,000 tax-free gift to her next year.

We can help you determine how to make the most of your 2014 gift tax annual exclusion.

© 2014

All content provided in this article is for informational purposes only. Matters discussed in this article are subject to change. For up-to-date information on this subject please contact a Clark Schaefer Hackett professional. Clark Schaefer Hackett will not be held responsible for any claim, loss, damage or inconvenience caused as a result of any information within these pages or any information accessed through this site.

Guidance

Related Articles

Article

2 Min Read

Spotting Charity Scams: How to Give Safely

Article

2 Min Read

Grants and Organizational Budgets for Not-for-Profits

Article

2 Min Read

Outsourced Accounting & Restaurants: A Winning Combination

Article

2 Min Read

Profits Interest Awards & New Guidance From the FASB

Article

2 Min Read

Four Tips for Construction Companies to Maximize Financial Management

Article

2 Min Read

Beneficiaries of Inherited IRAs to Receive Extended IRS Relief

Get in Touch.

What service are you looking for? We'll match you with an experienced advisor, who will help you find an effective and sustainable solution.

  • Hidden
  • This field is for validation purposes and should be left unchanged.