The Art Of Gifting - Limits, Transfers, Taxes, etc... - a podcast by LBW Wealth Management

It's the Christmas season again!  If you want to gift something, either cash, stock, cars, or property to someone your love, or for charity, please watch this episode.  People assume they can gift others whatever they want, because "well it's my money!"  But you know the IRS, they want to tax you for everything.  You can't, as a matter of fact, just give out free money/gifts however you want.  For 2021, you can gift any individual $15,000 per year without paying gift tax.  For example, if my parents want to help me buy a condo, my mom and dad can each gift me $15,000, and then each gift my husband $15,000.  That's $60,000 in total.  Anything above that, they can: 1. count it out of their lifetime exclusion limit (which is $11.7 million per person right now), 2. they can pay the gift tax, or 3. they can consider it a loan, and charge me interest.  Dan and Tim talked about how to gift assets in kind, what the arm's length rule is, and what the 5-year lookback rule is.  For Part II of this episode, we will discuss gifting businesses and investments, and the rules of charitable giving.

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