Investlist Faq-O-Matic :
Gifts
- When you gift an appreciated item to a charity, typically you get to
write off its market value if you have held the asset for a year.
The gift recipient should be provided with your basis for the gift (your purchase price) for tax purposes when they sell the gift.
Gifts to 501(c)(3) charities are tax-deductable, but be sure to retain proper documentation.
- If you gift to an individual, be careful not to gift more than $10,000
per individual per year -- see below for details. The $10,000 limit
is based on the market value of the asset. The individual will assume
your basis in the asset for tax purposes when they dispose of the asset.
A married couple can each gift $10,000 to an individual resulting in a
transfer of $20,000 from the couple. If the giver is married and
the recipient is married, a total of $40,000 can be transferred without
affecting the giver's inheritance tax.
The gift recipient should be provided with your basis for the gift (your purchase price) for tax purposes when they sell the gift.
Gifts to individuals are not tax-deductable. Receivers never pay tax to receive a gift (but will pay tax on the gain). The giver never pays tax unless the $10,000 limit is exceeded (see below).
- If you exceed the $10,000 "limit" from one individual to another
individual in one year, the gift reduces the tax-free assets that can be
distributed by your estate when you die by the amount of the gift over
$10,000 (see Inheritance Tax).
College Savings