THE GO-TO GUIDE TO GIFT TAX
How Much Can You Give Tax-Free?
instances aren’t impacted by the gift tax. Some tax-free offerings include:
married, your spouse can match your gift, and as a couple, you can give up to $34,000 per individual tax-free. If a gift exceeds this amount in any one year, you must pay a tax. How do you gift strategically? Although gift taxes seem burdensome, they can benefit those who properly plan. People with a significant estate will often schedule gifts each year to minimize their estate and, as a result, reduce the estate tax that would need to be paid upon their death. This strategy is an excellent way to save money for a family in the long run. This guide to gift taxes is simply an introduction. Be sure to speak with a tax professional or financial advisor when determining your gift tax responsibilities. You may also be able to learn a few new strategies that can protect your estate!
If you’re giving a substantial amount of money or property to someone, you’ll likely have to pay a gift tax. The IRS applies this federal tax on any individual who transfers assets to someone else without anything significant in return. You don’t need to worry about gift taxes if you’re just giving your child a small allowance, but when transferring thousands or millions of dollars, you will likely have to hand over a chunk to the IRS.
• Educational expenses • Medical expenses • Gifts to a spouse • Gifts or donations to political organizations or charities
Be sure to speak with your financial advisor or a tax professional on whether your gift requires a tax. You always want to err on the side of caution.
What does and doesn’t require a gift tax? Gifts include property, bank account transfers, cash, stocks, vehicles, art, lenient loans, and more. Sounds like everything, right? Well, a few
How much can you give? As of 2023, you can give up to $17,000 per
individual annually free of tax, meaning you aren’t limited to gifting just one person before you’re hit with a gift tax. If you’re
WHAT IS ETHICAL INVESTING? Use Your Values to Make Financial Decisions
• Climate change • Waste management • Gender and racial discrimination • Employee safety • Accounting practices However, ethical investing follows a more comprehensive approach and considers ethical matters that may not be discovered when assessing a company’s ESG standards. Some ethical concerns may include:
Do you want to start investing but are wary of funding large corporations with questionable ethics? Ethical investing is when people make investment decisions that align with their morals. When investing ethically, you support sustainable companies committed to widespread positive social change. Of course, “ethical” is subjective and means various things to different people. Ethical investors often research companies before investing to discover how the business impacts the world around them. These can concern human rights, environmental sustainability, and more. What is the difference between ethical and ESG investing? Ethical investing is similar to ESG investing, which evaluates a company’s environmental, social, and governance (ESG) standards. The difference? Ethical investing takes it a few steps further. For example, ESG investing looks at issues that can include:
Stanley Institute for Sustainable Investing found the return on investments focused on ethical choices was not noticeably different from traditional investments. It doesn’t hurt to care! Ethical investors actively work to support moral values in businesses and encourage sustainable practices. As more and more investors choose to support these companies, other businesses are pressured to clean up their acts and work harder to make a difference. Our ethical values, applied to investment choices, can make a huge impact! No one needs to throw away their values to start investing.
• Fossil fuel usage • Weapons production • Human rights • Child labor violations
It’s entirely up to the investor to decide which causes they want to invest in or eliminate from their investment portfolio through the companies they research and choose. Do ethical investments have high returns? While not all investments can guarantee a high return, one 2019 study by Morgan
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