Skip Ahead Here! 0:00 - Gift Tax 2022 Explained! 0:47 - What is a gift tax? 0:58 - Who has to pay a gift tax? 1:30 - Gift tax rules for 2022 3:28 - Do you have to pay taxes on money you received as a gift? 4:05 - How can you avoid paying taxes on gifts?
Thanks for your question. The Lifetime Gift Tax Exemption is scheduled to be cut in half in 2026. It is estimated that at this time, the lifetime exclusion will drop to around $6.2 million.
Thanks for your question. Yes, you can certainly give gifts to the same persons every year for the next 20 years as long as you stay within the maximum gift limits set by tax laws for each year. You should also be aware of the lifetime gift tax exclusion. You can read more here - districtcapitalmanagement.com/gift-tax/
If I add my best friend in my second hand car title along with my name, as joint tenants with right of survivorship, is this considered a gift? If so If fair market value of car is 17000$, then 17000$ is gift amount? Or 17000$/2 is gift amount?
Is my parent allowed to give me any amount? Could she transfer half a million to my bank account? And there will be zero negative repercussions for either of us? (as long as her giving stays below 12 million, which it will).
The gift tax exclusion limit is $17,000 in 2023. If you parents gift you over that then they will need to file Form 709 with the IRS as part of their annual return. However, the IRS allows a person to give away up to $12.92 million in assets or property over the course of their lifetime and/or as part of their estate. Therefore they may not owe any taxes. However, it's best to consult with your financial advisor or tax professional to ensure that there are zero negative repercussions.
@@DistrictCapital is there a gift tax in dividing assets as part of the divorce settlement? Someone said that some assets must be transferred before a divorce is complete to avoid the gift tax. Is there a time limit for asset division? I’ve also read that nothing gets taxed as long as the asset division is part of the divorce agreement. Assets can be exchanged later. Say one spouse says they want the house now to the themselves but they cannot give the entire $/buyout upfront. Would there be a penalty for giving the rest of the cash a few later later?
Hi. We plan to sell our old car to a relative and some told us that we can also gift it. If we gift it (and were planning to sell it for less than the gift-tax-exclusion anyways) we both don't need to pay any kind of taxes, correct ? But if it's not as a gift, in this private sale, the seller don't pay any taxes but the buyer will ? And if it's a gift, then we won't receive any kind of payment on it too ? Just wonder what's the best scenario for us. thx
Any updates? I have a similar question as well. My gramps is gifting me a vehicle valued at $22K and I don't want them to get stuck paying any gift taxes. Just wondering if "buying" the vehicle at a low amount would be the better way to go.
How did it go for both of you? In the past I always heard that it’s best to sell cars for a low amount. That’s what everyone I know does. Some sell a car to their mom/relative/friend for $1 lol
Skip Ahead Here!
0:00 - Gift Tax 2022 Explained!
0:47 - What is a gift tax?
0:58 - Who has to pay a gift tax?
1:30 - Gift tax rules for 2022
3:28 - Do you have to pay taxes on money you received as a gift?
4:05 - How can you avoid paying taxes on gifts?
The last thing the government needs is a gift tax.
Could you elaborate on the 6mil limit for 2026?
Thanks for your question. The Lifetime Gift Tax Exemption is scheduled to be cut in half in 2026. It is estimated that at this time, the lifetime exclusion will drop to around $6.2 million.
Can give a gift the the same persons every for the next 20 years if I stay below the maximum for each year?
Thanks for your question. Yes, you can certainly give gifts to the same persons every year for the next 20 years as long as you stay within the maximum gift limits set by tax laws for each year. You should also be aware of the lifetime gift tax exclusion. You can read more here - districtcapitalmanagement.com/gift-tax/
And I do not have to file Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return
@@DistrictCapital
Great video! Thank you. Can the giver be from anyone? I assume gifts can be from anyone because it's a gift.
Yes, correct. The giver can be anyone. Have a great day!
If I add my best friend in my second hand car title along with my name, as joint tenants with right of survivorship, is this considered a gift? If so If fair market value of car is 17000$, then 17000$ is gift amount? Or 17000$/2 is gift amount?
Great question! It's best to get the answer by working with a financial planner :)
@District Capital thank you, sincerely appreciate your response.
Is my parent allowed to give me any amount? Could she transfer half a million to my bank account? And there will be zero negative repercussions for either of us? (as long as her giving stays below 12 million, which it will).
The gift tax exclusion limit is $17,000 in 2023. If you parents gift you over that then they will need to file Form 709 with the IRS as part of their annual return. However, the IRS allows a person to give away up to $12.92 million in assets or property over the course of their lifetime and/or as part of their estate. Therefore they may not owe any taxes. However, it's best to consult with your financial advisor or tax professional to ensure that there are zero negative repercussions.
@@DistrictCapital Ok great! Thank you.
Do you have any additional questions about gift tax?
Divorce and after divorce?
@@leonab545 thanks for your question. We would love to help answer it for you. Can you please elaborate further?
@@DistrictCapital is there a gift tax in dividing assets as part of the divorce settlement?
Someone said that some assets must be transferred before a divorce is complete to avoid the gift tax. Is there a time limit for asset division?
I’ve also read that nothing gets taxed as long as the asset division is part of the divorce agreement. Assets can be exchanged later.
Say one spouse says they want the house now to the themselves but they cannot give the entire $/buyout upfront. Would there be a penalty for giving the rest of the cash a few later later?
Hi. We plan to sell our old car to a relative and some told us that we can also gift it. If we gift it (and were planning to sell it for less than the gift-tax-exclusion anyways) we both don't need to pay any kind of taxes, correct ? But if it's not as a gift, in this private sale, the seller don't pay any taxes but the buyer will ? And if it's a gift, then we won't receive any kind of payment on it too ? Just wonder what's the best scenario for us. thx
Any updates? I have a similar question as well. My gramps is gifting me a vehicle valued at $22K and I don't want them to get stuck paying any gift taxes. Just wondering if "buying" the vehicle at a low amount would be the better way to go.
@@PabloEscobar-zx3fw I think if 16k is taxed. So the 6k will be. I think but not sure.
How did it go for both of you? In the past I always heard that it’s best to sell cars for a low amount. That’s what everyone I know does. Some sell a car to their mom/relative/friend for $1 lol