HOW TO AVOID THE GIFT TAX ON MEDICAL BILLS AND TUITION FTR TAX TIP OF THE MONTH
GRILLED CHICKEN SHAWARMA
You might recall that last month in this section of the newsletter, I told you all about the gift tax. I described when a gift might be taxable, and when the Form 709 Gift Tax Return should be filed with the IRS. I also laid out the annual exclusions and lifetime exclusion. What I didn’t mention are the two specific instances when, if you make a gift under particular circumstances, there is no limit to the amount of the gift and no requirement to file a Form 709 with the IRS. THE MAGIC TRANSACTIONS Qualified transfers for tuition or medical expenses are not considered gifts if handled properly. To do it right, the payment must be made directly from the donor to the school or care provider. Payments made to the beneficiary (the person in need of medical help or education) do not qualify, even if the payments reimburse the beneficiary for tuition or medical expenses. The donor and donee do not need to be related, and there is no limit on the amount that can be transferred. An annual exclusion gift can also be made to the same beneficiary in the same year. IMPORTANT QUALIFICATIONS Tuition qualifies as long as it’s paid to a domestic or foreign institution that maintains a regular faculty and curriculum, and normally has a regularly enrolled body of students in attendance at the place where it carries on its educational activities. Man, what a mouthful! The tuition can be for primary, secondary, or higher education, and for part-time students. Books, room and board, and other expenses do not qualify. Qualified medical expenses include any unreimbursed expenses that would be deductible medical expenses on a Form 1040. Do you still have questions about these gift tax exclusions? Please contact me! I can help you, your friend, or your family member figure out how to make a gift tax-free.
Inspired by FeastingAtHome.com
INGREDIENTS
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2 tbsp ground cumin
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1 tsp ground black pepper
2 tbsp ground coriander
2 tsp allspice
2 tsp kosher salt
8 garlic cloves, minced
1/4 tsp cayenne pepper
6 tbsp olive oil
2 tsp turmeric
2 lbs boneless, skinless chicken thighs
1 tsp ground ginger
DIRECTIONS
1. To create marinade, whisk all spices with the garlic and olive oil in a medium bowl. 2. Add chicken to the bowl, coat well with marinade, cover, and let sit in the fridge for at least 20 minutes — or up to 48 hours. Strain off excess marinade before cooking. 3. Preheat grill to medium-high heat. Grill thighs for 10–12 minutes on each side, or until a meat thermometer reads 165 F.
4. Serve with rice, vegetables, or pita bread with tzatziki.
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