One more holiday chore
Yes, there is a lot to do in December. Don’t leave gifting to the last minute - get it done now to insure your gift happens in this calendar year.
If you are gifting cash, remember the $12,000 exclusion limit. You can gift more than $12,000 but must fill out a gift tax form on your taxes. Gifts in excess of $12,000 this year can be tax free as part of the $1 million dollar lifetime exclusion, but you still have to file the gift on your return. Next year (2009) the gift exclusion rises to $13,000.
If you are gifting stock to take advantage of the depressed valuations, take action earlier rather than later. Brokers are very busy at the end of the year, and this year is no exception. Gifting stock is not simple and straightforward and requires assistance - so be mindful of possible delays and get your gifts in now. If your gift is not completed by December 31st it won’t count in 2008, so get ahead of any problems and take action early this month.
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