Gifting money is a nice thing to do for a friend or family member, but—as the saying goes—no good deed goes unpunished. If you’re not careful, your gift could turn out to be subject to the federal gift tax of up to 40%. In part one of this series, we…
The main purpose of the federal gift tax is to keep people from avoiding paying the federal estate tax by simply giving away all their money before they die. The basics of the gift tax are as follows: In 2022 the maximum federal gift tax rate is 40%. There is…