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Posts Tagged ‘Gift’
3 Reasons Many Family Loans Turn into Grants
Have you made a loan to a child or grandchild?
When making a loan, you have an expectation of getting paid back. When a family loan turns into a grant, you’re not going to get paid back. Here are 3 reasons a family loan may turn into a grant.
3 Easy Ways to Financially Help Your Children or Grandchildren
Do your children or grandchildren need some financial assistance?
Here are 3 Easy Ways to help them:
1) Make a Loan
Parents and grandparents can loan to their child or grandchild. If this is the approach taken, a formal loan agreement should be drawn up. This should include interest and the repayment terms. The Internal Revenue Service ("IRS") will require a minimum amount of interest to be … Continue reading »
How to Maximize Your Annual Gifts and Minimize Your Estate Taxes
Annual Exclusion
Taxpayers are allowed to gift up to $13,000 per year to an unlimited number of people without having to file a gift tax return or pay a gift tax. If the amount goes over $13,000 to any one individual, then a gift tax return must be filed. This is done on IRS Form 709, United States Gift Tax Return. Connecticut taxpayers required to file a federal … Continue reading »
7 Smart Year End Tax Planning Moves
1) Harvest Capital Losses
Capital gains property includes stocks, bonds and mutual funds. Currently, the stated rate on long term capital gains is 15%. If you have a net loss after netting all of your gains and losses, the tax deduction is limited to $3,000. Any excess capital losses can be carried into the future.
How to Plan for College Using The 529 Plan
Next to saving for retirement, your biggest financial challenge is probably saving for your child’s college education. College costs have skyrocketed! People wonder how they will afford the cost of a college education in the future. A 529 College Savings Plan is a very simple way to save money for your child’s college education. The benefits are tremendous. Here are some highlights of the plan:
