Planning Tip of the Month:
MAKE GIFTS! If the total value of your individual
estate is more than $2,000,000 you can reduce your exposure to state estate taxes by making gifts. And you can lower
your federal estate taxes if your estate is more that $3,500,000. A gift of $13,000 for each individual
recipient can be made without incurring any gift tax, but must be done by December 31.
GIFT STRATEGY FOR ASSETS: If you
are thinking of giving away an asset that has lost value and is now worth less than the tax basis, you and your intended recipient
may be better off if you simply sold the property at a loss and gave the cash to the recipient. You may
be able to claim a loss on your income taxes and your recipient won’t be saddled with an asset with a low basis, i.e.,
a basis pegged on the current lower fair market value.
To comply with the U.S. Treasury regulations, we must inform you
that (i) any U.S. federal tax advice contained in this website was not intended or written to be used, and cannot be used,
by any person for the purpose of avoiding U.S. federal tax penalties that may be imposed on such person and (ii) each taxpayer
should seek advice from their tax advisor based on the taxpayer's particular circumstances.