© 2020 Arizent. All rights reserved.
Gift Tax Exceptions Every Advisor Should Know
Not every gift is a taxable gift, according to the IRS. If you gave money or property to someone as a gift, the following gifts are not taxable gifts:
The Exclusion<br><br>
Gifts that do not exceed the annual exclusion for the calendar year (for 2011 and 2012, the annual exclusion is $13,000).
The Gift of Learning<br><br>
Tuition you pay directly to an educational institution for someone.
The Gift of Health<br><br>
Medical expenses you pay directly to a medical institution for someone.
The Gift of Love<br><br>
Gifts to your spouse.
The Gift of Your Point of View<br><br>
Gifts to a political organization for its use.
The Gift of Helping Others<br><br>
Gifts to charities.
Splitting That Gift?<br><br>
Then you and your spouse can make a gift up to $26,000 to a third party without making a taxable gift. The gift can be considered as made by one-half of you and one-half by your spouse.

But, if you split a gift, you must file a gift tax return (Form 709) to show that you and your spouse agree to use gift splitting. And, that's even if the split gift is less than the annual exclusion.