Legal Question in Business Law in New Mexico

gift tax

Can someone become involved in a gifting circle if they own a business? And will they be taxed for their gift.

Asked on 12/28/00, 11:35 am

1 Answer from Attorneys

Charles Aspinwall Charles S. Aspinwall, J.D., LLC

Re: gift tax

Legitimate business gifts may be a tax-deductible expense at year's end, but the rules can be tricky. Check with your accountant before making any sizeable gifts to business clients. It matters not through what device a gift is made.

Personal gifts are exempt from gift taxation up to $10,000 per year, per person and per donee. Such gifts apply against the lifetime unified tax credit, however, so, again, consultation with a tax professional is recommended before making any appreciable gift.

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Answered on 12/31/00, 10:17 am

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