Legal Question in Tax Law in Massachusetts

Re: gift tax

Simply put, you are responsible for any gift tax if you give her a gift.

however there are ways of gifting without paying a gift tax. first a gift of $10,000.00

to any individual per calander year is exempt from gift tax, you do not even need to file a gift tax return; this 10,000 isw cululative and includes all gifts in that year.

Secondly, if you are married you and your spouse can gift up to $20,000.00 per person per calander year with out paying a gift tax.

You and your wife would need to file a gift tax return within 9 months of the gift and elect to "gift split" on the return.

Thridly, you can give an unlimited amount to a person if the money is applied directly to tuition or payment of medical bills, this money must be paid directly to aqualified educational institution or medical care provider

NOT the person directly.

There are other ways to gift large amounts of money without having to pay a tax.

The rules for gifting are complex, call or consult a qualified professional before gifting.

I offer a free consultation 978 465-5158