Nora Tellifson, CPA •
The holidays are approaching, and who doesn’t appreciate the gift of cash? I find that there’s a lot of confusion out there surrounding personal gifting so let’s demystify that because it’s very powerful, and you can do a lot without incurring any reporting requirements. I am not referring to charitable contributions here which are amounts you give to a charitable organization and may be deductible for income tax purposes. A personal gift occurs whenever you give something personally to someone (a family member or friend usually) and do not receive something back in consideration. For purposes of our discussion, I am going to stick to personal gifts of cash. Just be aware that there are gift considerations when you gift noncash items also.
The holidays are approaching, and who doesn’t appreciate the gift of cash? I find that there’s a lot of confusion out there surrounding personal gifting so let’s demystify that because it’s very powerful, and you can do a lot without incurring any reporting requirements. I am not referring to charitable contributions here which are amounts you give to a charitable organization and may be deductible for income tax purposes. A personal gift occurs whenever you give something personally to someone (a family member or friend usually) and do not receive something back in consideration. For purposes of our discussion, I am going to stick to personal gifts of cash. Just be aware that there are gift considerations when you gift noncash items also.