Q. I am getting married in a few months and and my fiance at a lost as to what to give our parents. We want to stay away from anything cheesy - like photo frames, or poems - we want something nice, but sentimental. Willing to pay up to $300 for them.
Answer
A really nice gift would be to take one wedding invitation, have them put in a shadow box with a picture of (you pictured with your mom and dad at the wedding) ~ placed on velvet or satin in a color that would compliment your wedding colors~and then have a dried flower from your wedding bouquet or the church flowers placed in the shadow box with the invitation and pictures. It is original and really makes a nice keepsake. It's not about the price of the gift~it's from the heart and would remind them of your special day and that they were a big part of it. Remember, often dad's feel as though they are losing a daughter and moms...well, they are already feeling the empty nest thing. So a gift that shows "they are still very much included" in your life would be appreciated.
A really nice gift would be to take one wedding invitation, have them put in a shadow box with a picture of (you pictured with your mom and dad at the wedding) ~ placed on velvet or satin in a color that would compliment your wedding colors~and then have a dried flower from your wedding bouquet or the church flowers placed in the shadow box with the invitation and pictures. It is original and really makes a nice keepsake. It's not about the price of the gift~it's from the heart and would remind them of your special day and that they were a big part of it. Remember, often dad's feel as though they are losing a daughter and moms...well, they are already feeling the empty nest thing. So a gift that shows "they are still very much included" in your life would be appreciated.
Tax advice on a gift I'll be getting?
joni38
My cousin died and left around $300,000 to my mom in her will. My mom has the check and wants to split it between me and my sister - but we want to hold out the amount for gift tax. From googling, it looks like the tax rate is 34%..but my mom talked to her tax man today who said there is no inheritance tax and will be no gift tax on this? Which sounds too good to be true...I asked my mom why there will be no gift tax and she doesn't know...and I can't find out anything else until tomorrow...does anyone know if there is some exception to paying gift tax? I'd always heard it was either $10,000 per person per year or maybe $20,000....she is 88 and wants to give it to us all at once due to her age...we have two other siblings and me and sis are the ones in need of $$, thus her decision to give it to the two of us rather than let it pass thru her will in the future. Also - if no gift tax, then will there be income tax on it? Thanks !!
â¥â¥â¥ thanks to HR Girl & Bostonian!!! I am so happy to hear this tonight :))))
Whooo - HOOOOOO :)))
Answer
First off, the recipient of a gift NEVER pays any tax on the gift. So you and your sister have nothing to worry about.
Due to the size of the gifts, your mother will have to file a Gift Tax return, however no tax will likely be due unless she has been VERY generous throughout her lifetime.
A Gift Tax return is required whenever someone gives gifts totaling $12,000 or more in any one tax year to a single recipient. Since she'll be giving $150,000 to each of you, she will have to file a Gift Tax return. However, on top of the $12,000 per recipient annual exclusion there is a unified lifetime exclusion of $1,000,000. Unless the $276,000 that she's giving the 2 of you brings her over the $1,000,000 lifetime exclusion, no tax will be due at all.
There is one possible hitch, though. That $1,000,000 exclusion is tied to the Estate Tax exclusion and reduces it dollar for dollar. If her estate is substantial it could trigger or increase any Estate Tax that her estate will pay when she passes on herself. For this reason she may wish to consult with a local tax expert -- a CPA or EA, not a storefront tax prep mill -- or an estate planner to make sure that this doesn't trigger any more tax then absolutely necessary. If her total estate, including the $300,000 she inherited, is less than $1,000,000 and isn't likely to exceed that much there won't be any Estate Tax issues to worry about, though.
First off, the recipient of a gift NEVER pays any tax on the gift. So you and your sister have nothing to worry about.
Due to the size of the gifts, your mother will have to file a Gift Tax return, however no tax will likely be due unless she has been VERY generous throughout her lifetime.
A Gift Tax return is required whenever someone gives gifts totaling $12,000 or more in any one tax year to a single recipient. Since she'll be giving $150,000 to each of you, she will have to file a Gift Tax return. However, on top of the $12,000 per recipient annual exclusion there is a unified lifetime exclusion of $1,000,000. Unless the $276,000 that she's giving the 2 of you brings her over the $1,000,000 lifetime exclusion, no tax will be due at all.
There is one possible hitch, though. That $1,000,000 exclusion is tied to the Estate Tax exclusion and reduces it dollar for dollar. If her estate is substantial it could trigger or increase any Estate Tax that her estate will pay when she passes on herself. For this reason she may wish to consult with a local tax expert -- a CPA or EA, not a storefront tax prep mill -- or an estate planner to make sure that this doesn't trigger any more tax then absolutely necessary. If her total estate, including the $300,000 she inherited, is less than $1,000,000 and isn't likely to exceed that much there won't be any Estate Tax issues to worry about, though.
Powered by Yahoo! Answers
No comments:
Post a Comment