Are you confused about taxes for giving gifts?

If you gave money or property to someone as a gift, you may wonder about your liability for the federal gift tax.

The general rule is that any gift is a taxable gift.   Happily, there are many giving of gifts rules, and many exceptions and types of transactions that avoid the gift tax.

. The following gifts are NOT taxable gifts:

There are rules to follow for these qualified medical and educational expenses: 




More answers to additional gift rules:

  1. Is there a tax to gift recipient? Generally, the person who receives your gift will not have to pay a federal gift tax. That person also does not pay income tax on the value of the gift received.
  2. Would your gifts be tax deductible?  Making a gift does not ordinarily affect your federal income tax.

You cannot deduct the value of gifts you make (other than your deductible charitable contributions).

  1. What happens if you forgave a loan? The gift tax liability may also apply when you forgive a debt or make a loan that is interest-free or below the market interest rate.
  2. What happens if you give someone a loan but charge very low interest rates?


If interest on a loan is less than the IRS “applicable federal rate (AFR),” the foregone interest is considered a gift from the lender. In addition, the foregone or “lost” interest is also taxable income to the lender.


  1. Gift-splitting. In 2017, you and your spouse can give a gift up to $28,000 ($14,000 each) to a third party without making it a taxable gift. You can consider that one-half of the gift be given by you and one-half by your spouse.


  1. What are the tax- filing requirement for taxable gifts?You must file Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return if any of the following apply:

This topic is confusing. Gift transactions and other events that occur during the year  will affect your tax situation. Please contact us in advance of making these transactions if you have questions about the tax effects of this transaction or event.

Contact Harvey Weinstein, Tax Advisors Network, directly at 860-778-8168.