The Internal Revenue Service (IRS) does not require you to declare your gifts or inheritances that you received during the tax year on your Federal income tax returns unless you fall within a few exceptions. In most cases, as the recipient of a gift or inheritance, you do not have to pay income taxes on those gifts. Instead, the donor of the gift pays income taxes if his gift exceeds the annual threshold. For the 2011 tax year, the annual gift limit is $13,000 per recipient. Thus, a donor does … [Read more...] about The IRS and Foreign Gifts
Accountants and tax attorneys know some of the best ways to reduce your tax liabilities while you are still living. However, estate planning attorneys may help you simultaneously reduce your tax liabilities while you are still living and after your death. According to the federal Internal Revenue Code, the Internal Revenue Service allows you to make gifts of up to $13,000 without having you pay taxes on those gifts. Furthermore, your recipients will not have to pay federal income taxes on the … [Read more...] about Make 2012 A Gift Giving Year
The Texas Comptroller’s Office issued a draft copy of its 2012 Texas franchise tax report. The report identifies several new items for 2012, including a $50 late filing penalty. Taxpayers are reminded that the $1 million no tax due threshold is extended to December 31, 2013. As a result of the Consumer Price Index adjustment, the no tax due threshold is now raised to $1,030,000, and the compensation deduction has also been raised to $330,000 per person, for reports due on or after January 1, … [Read more...] about 2012 Texas Franchise Tax Update
Many married couples have “I Love You” wills. These are simple wills that mirror each other and leave all your assets to the surviving spouse. While there’s nothing inherently wrong with this type of will, unless you’re in a very limited financial situation, “I Love You” wills may not be the best option for your family. Here are some of the things that this type of will just can’t do: Tax Planning. If your estate is large enough to be taxable – and starting in 2011, this just might include … [Read more...] about Do You and Your Spouse Have “I Love You” Wills?