Starting in 2006, taxpayers will be able to give cash gifts of up to $12,000 to each recipient without facing gift-tax issues. That's up from $11,000 this year. Married couples can give twice as much.
Strategy: Plan to give away even more assets starting next year. Whatever you transfer to your loved ones during your lifetime is removed from your taxable estate.
Example: If you have two children and five grandchildren, you and your spouse can together give each of them $22,000 this December and another $24,000 in January for a grand total of $322,000 ($46,000 times seven gift recipients). All of it is free from gift tax.
- Small Business Tax Deduction Strategies No matches