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“It’s worth noting that donations to political action committees and groups designated as 501(c)(4) nonprofit organizations are not tax-deductible,” said Kay Bell, author and tax journalist ...
The deduction for a gift made in cash is limited to 60% of the giver’s adjusted gross income. Gifts of other assets can be deducted up to a limit of 30% of adjusted gross income.
A further trap awaits the unwary U.S. investor who donates depreciated assets – assets on which there have been losses in value – to charity. The gift actually forfeit the tax deductibility of the capital losses, and only the depreciated (low) market value at the time of the gift is allowed to be deducted, rather than the higher basis.
Without the gift tax, large estates could be reduced by simply giving the money away before death, thus escaping any potential estate tax. Gifts above the annual exemption amount act to reduce the lifetime gift tax exclusion. [14] Congress initially passed the gift tax in 1932 at a much lower rate than the estate tax, a full 25% under the ...
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The current rule is that for beneficiaries under 19 (under 24 if a student), the first $1,050 of unearned income is tax-free, the second $1,050 is taxed at the minor's rate (typically 12%), and the amount over $2,100 is taxed at the ordinary and capital gains rates applicable to trusts and estates. UGMA and UTMA accounts can invest in the stock ...
The federal government also grants a blanket standard deduction that is available to nearly all taxpayers, even if they don’t incur specific expenses that would qualify as itemized deductions.
The U.S. generation-skipping transfer tax (a.k.a. "GST tax") imposes a tax on both outright gifts and transfers in trust to or for the benefit of unrelated persons who are more than 37.5 years younger than the donor or to related persons more than one generation younger than the donor, such as grandchildren. [1]
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related to: tax deduction gift to child under 5 cents worthStellar Choice For Taxpayers - TopTenReviews