Posted on: 21st Dec, 2010 01:38 pm
I have read that there is an annual limit of $13,000 on gift taxes and also an annual exemption of $1 million, so at what point would you pay a gift tax?
Hi joey,
There is an annual gift tax exemption of $13,000 and a life time gift tax exemption of $1 million. If you gift something worth $13,000, then you should claim the annual gift tax exemption of $13,000. If you gift something worth more than $1 million, then you will be able to use the life time gift tax exemption. After the exemption limits are over, you'll be liable for paying gift taxes.
Thanks
There is an annual gift tax exemption of $13,000 and a life time gift tax exemption of $1 million. If you gift something worth $13,000, then you should claim the annual gift tax exemption of $13,000. If you gift something worth more than $1 million, then you will be able to use the life time gift tax exemption. After the exemption limits are over, you'll be liable for paying gift taxes.
Thanks