All About Gifts

Pigg asked:


I will be receiving a number of financial gifts over the next few years and am wondering if a gift given today (or in Feb/March?) would still be eligible for the 2006 tax year.

Much as with an IRA you can contribute money in early 2007 to reduce your 2006 income, can you use this same strategy for financial gifts?…have a gift of $10,000 today be counted towards that person’s gift limit to me for 2006?

Bill

Mike asked:


When my wife and I beame engaged in March 2007, I gave her a valuable ring. We had our wedding in early May 2007 and I gave her some money so that she could have her own bank account. I was wondering if I had to pay gift tax for any of the above?

Alma

BustedDreams asked:


My in-laws are being gracious enough to gift $40K. How should the money be transffered so as to avoid having to pay taxes on it. We are a family of four, myself, wife, and two sons (ages 5-9). If the answer involves giving gifts to the kids, how does gift money get to hime builder?

Eddie

taojoe asked:


I understand there is a $1,000,000 lifetime exemption. I also know that recently the annual gift limit tax exemption to an individual was $12,000, but I’ve been told that this annual limit has now been eliminated. Is this true?

Douglas