TAX MANAGEMENT
TAX CONSIDERATIONS
SOME KEY OPTIONS FOR REDUCING TAXES WHILE GIFTING TO A PERSON OR ORGANIZATION YOU CARE ABOUT, INCLUDE: 1. ANNUAL EXCLUSION GIFTING TO INDIVIDUALS These include annual tax-free transfers of no more than $14,000 (2017 limit) of cash, real estate, securities, business interest, and/or limited partnership interests made to any individual. Gifting these assets helps a family avoid the gift and estate tax on those assets in the donor’s estate. The gift grows outside of the donor’s estate from that point forward.
GIFT
NO GIFT $14,000
Initial Amount
$14,000
- Tax
$0
$5,600 (at 40%)
Final Amount
$14,000
$8,400
2. 529 PLAN CONTRIBUTIONS Contributions to a 529 College Savings Plan grow federal tax-free and will not be taxed when the money is withdrawn by the beneficiary if used for qualified education funding. Many states also offer tax breaks for 529 plan contributions in the form of income tax deductions to residents.
Contributions to the plan do not have to be reported on
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