Federal Transfer Tax System: Gift Tax Basics

Federal Transfer Tax System: Gift Tax Basics

First instituted by the Revenue Act of 1924, gift taxes are incurred when there is a voluntary transfer (i.e., gift) of cash or other property from one individual to another that is less than fair market value.

The Internal Revenue Service (IRS) defines fair market value as, “… the price at which the property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or to sell and both having reasonable knowledge of relevant facts.” Each individual is allowed to donate up to $13,000 in cash or property per donor annually without facing a tax, a practice commonly referred to as the annual exclusion.

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Adult Children May Be Overlooked In ACA Repeal

Adult Children May Be Overlooked In ACA Repeal

ACA healthcare repeal may not abolish the coverage afforded to adult children that was so-enjoyed when The Affordable Care Act first came to be. Right now, adult children can still be covered on their parent’s health insurance plan until their 26th birthday. Now, seeking broad support for their efforts to repeal and replace the ACA, House Republicans have kept that guarantee intact. But it’s not clear whether that provision will be successful or a destabilizing…

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