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| *Loan,banking and credit>>>child tax |
How much money can i gift my children tax free in the year 2006? |
How much money can i gift my children tax free in the year 2006? Estate and Gift Tax Generally, an estate tax return must be filed if the estate is more than the unified credit effective exclusion amount. This amount increases to $2,000,000 (from $1,500,000) for estates for tax-year 2006 through 2008, and increases to $3,500,000 for tax-year 2009. The amount remains $1,000,000 for gifts for tax-year 2006. The estate and gift maximum marginal tax rates drop to 46% (from 47%). The rates drop to 45% by tax-year 2007. The annual gift tax exclusion increases to $12,000 (from $11,000). In 2010, the estate tax is repealed, as is the "stepped up" basis rule for inherited property. Source(s): http://www.jacksonhewitt.com/ Look it up...IRS.com I think you can make a one life time gift of 10,000 to a family member..but I don't think you can do it each year.. Just once! $10,000/year/member Just make sure you arn't giving them anything that will incur capital gains. Wow people, it was $10,000 quite a while ago! The answer is $12,000 for 2006. And remember, if you are married both you and your spouse get to gift $12,000 each. That could mean $24,000 in gifts - tax free! And to disagree with the first person who answered, it is an ANNUAL exclusion for each donee. Keep in mind there are some exceptions if you are gifting beyond the simple things (like cash). You'll want to consult a CPA or tax attorney in that case. $11,000 per parent to each child. |
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