The gift tax and other humbugs that can ruin the holidays – A primer
As we move through the various holidays recognized in December it is important to remember that charity, humanity, and family are the reason the holidays exist in the first place. Enjoy one another. Be kind to everyone you meet.
However, merriment is not always present this month and that is where this article will focus. First and foremost, let’s address the spirit of giving. No other period of the year embodies the spirit of giving more than the month of December. To give is to freely transfer possession of something (property) to someone else.
As the old saying goes though, nothing is free. In fact, the IRS has special tax treatment for gifts. What was that, taxes on gifts? Yes, that is correct. Per the Tax Code there is a tax on any transfer of property from one individual to another. Talk about a serious holiday downer. Thankfully there is an exemption available to save the spirit of giving. In fact, the exemption covers up to $15,000 worth of gifts annually. So give and give big!
Also, as a reminder, please have a designated driver lined up or use a ride share for any holiday parties you plan on attending this season. The legal limit in Pennsylvania is .08, but that is just the tip of the troubled iceberg. DUIs are divided into three tiers: general impairment, high rate, and highest rate. These tiers determine the sentence associated with a DUI arrest. In short, you will have a lot less money for the giving mentioned above if you are pulled over and charged with a DUI. Further, driving impaired is the equivalent of playing roulette with not only your fate but also everyone else. It is best to leave roulette to the casinos because playing the road version produces zero winners.
Finally, everyone should focus on leaving family feuds to the television show. There is never a good time for a domestic issue so keep that in mind while you are attending family dinners. Sure there is a lot of stress at times in everyone’s lives. Do not let that stress escalate a situation to fisticuffs or worse. It is safe to assume that no one wants an assault, battery (and/or both) case either civil or criminal as a gift this holiday season. So do your best to avoid these situations or topics that could create tensions.
If by chance you do not head this advice, feel free to call us at 724-550-6970 or email us at info@theskeenfirm.com. We would be glad to speak with you to help you through your holiday humbugs.
*Disclaimer: the advice provided is for informational purposes and is not intended as legal advice. It should not be relied on, nor construed as creating an attorney-client relationship.