Gift Taxes 2019 - 3 CPE
Giving gifts can substantially reduce the amount of estate taxes owed. You would think that giving away money would be easy. For gifts totaling small amounts, it is easy and tax free. However, larger gifts may require completing a gift tax return and may also be subject to the gift tax. Gifts are considered to be taxable gifts when they exceed a specific value. The specific value is called the annual gift exclusion amount. Gifts that exceed this amount will reduce the life time estate and gift exclusion amount. Finally, any gift tax is owed by the giver of the gift, not the recipient. This course will explore the topic of gift taxes and explain when gifts are free of tax liability and when filing a gift tax return is required.
Introduction
Taxable gifts are addressed in Section §2501 of the Internal Revenue Code.
Giving gifts can substantially reduce the amount of estate taxes owed. You would think that giving away money would be easy. For gifts totaling small amounts, it is easy and tax free. However, larger gifts may require completing a gift tax return and may also be subject to the gift tax. Gifts are considered to be taxable gifts when they exceed a specific value. The specific value is called the annual gift exclusion amount. Gifts that exceed this amount will reduce the life time estate and gift exclusion amount. Finally, any gift tax is owed by the giver of the gift, not the recipient. This course will explore the topic of gift taxes and explain when gifts are free of tax liability and when filing a gift tax return is required.
Learning Objectives
At the end of this course, students will be
• Describe what financial transactions constitute a gift.
• Identify the annual gift exclusion amount.
• Identify when gift tax is owed and demonstrate how to calculate the amount owed.
CPE Credit: 3 CPE for CPAs and EAs
Level: Intermediate
Instructional Method: Self-Study
NASBA Field of Study: Taxes
Program Prerequisites: Basic understanding of federal income taxation concepts.
Advanced Preparation: None
Course Alignment: This course is aligned with the NASBA
