GIFT TAX RETURNS

 

The service of gift tax preparation involves assisting individuals in complying with the tax requirements related to the transfer of property or assets as gifts. In the United States, the IRS requires individuals to file gift tax returns if they give gifts beyond a certain annual or lifetime exemption limit.

 

 

Key Features of Our Service

 

 

• Understanding Gift Tax Laws: Educating clients about the rules and regulations surrounding gift taxes, including what constitutes a taxable gift, annual exclusion amounts, and lifetime gift tax exemption limits.

 

• Identifying Taxable Gifts: Determining which gifts made during the year are subject to gift tax. This includes gifts of cash, property, or assets that exceed the annual exclusion limit set by the IRS.

 

• Gathering Documentation: Collecting all necessary documentation related to the gifts given, such as property valuations, recipient information, and records of any previous taxable gifts.

 

• Calculating Gift Tax Liability: Calculating the amount of gift tax due, if any, after considering the annual exclusion and applying any applicable lifetime exemption amounts.

 

• Completing and Filing Form 709: Accurately preparing and filing IRS Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, which is required for reporting taxable gifts.

 

• Strategic Gift Planning: Advising on strategies to minimize gift tax liability, such as spreading gifts over multiple years to take advantage of the annual exclusion or making direct payments for medical and educational expenses which are exempt from gift tax.

 

• Estate Planning Integration: Coordinating gift tax strategies with the client’s overall estate plan, as lifetime gifts can impact the estate tax.

 

• Handling State Gift Taxes: Addressing any state-specific gift tax requirements, as some states have their own gift tax rules separate from federal regulations.

 

• Dealing with Audits and Inquiries: Assisting with any audits or inquiries from the IRS regarding the gift tax returns filed.

 

• Year-Round Consultation: Providing ongoing advice and updates on changes in gift tax laws and regulations that may affect the client's tax planning.

 

 

Gift tax preparation services are  provided by our tax professionals, certified public accountants (CPAs) and enrolled agents (EAs) who specialize in estate and gift taxation. The Experts here at sterling tax and accounting inc.help ensure that clients comply with the complex rules of gift taxation and take advantage of available exemptions and deductions to reduce their tax liability.