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Haiti Donations in Early 2010 OK For Claiming On 2009 Returns

Posted by Administrator on Feb-1-2010

The IRS announced a new tax relief for people who contributed to providing earthquake relief in Haiti. It allows contributors to get the tax advantage of the donation for their 2009 claim rather than waiting a year for the benefit.

According to the irs.gov website, only cash contributions made after January 11, 2010 and before March 1, 2010 will qualify. All cash donations made after March 1, 2010 will only be eligible to be claimed for the 2010 tax year.

To gain the benefit, you must itemize your tax deductions using Schedule A. For more information, please visit the IRS website at irs.gov.

Jan
13

Do you Have to Pay Taxes on Gifts?

Posted by mir

Is ths taxable?

Many of us received Christmas gifts from friends or family members this year.  Chances are, we also gave gifts to lots of people as well.  Hopefully everyone got what they wanted and were maybe even pleasantly surprised with some of them.  Is that the end of the story?  Unfortunately, it may not be.  Did you know you’re supposed to pay taxes on gifts?  How crazy is that?  When I heard this I realized I am certainly not the only one not abiding by this relatively unknown tax law.  For any of you, like me, who had no idea this law existed, let me fill you in on some of the details.

The first question to answer is who is responsible for paying the gift tax.  In general, the giver of the gift is responsible for paying the gift tax.  However, in rare circumstances, the receiver may pay the tax.  A decision like this would require consultation from a tax professional.

The second question to answer is what items qualify as a gift.  To put it in simple terms, any direct or indirect transfer to an individual where nothing is received in return.  This can be measured in monetary terms or by how much the money is worth.

The third question is whether or not certain gifts can be excluded from being charged a gift tax.  Generally, any gift can be taxable, but there are some exceptions.  Any gift that is less than the yearly exclusion for the calendar year may be considered exempt. Medical expenses or tuition you pay on behalf of someone else, or gifts you give to your spouse can also be excluded from taxation.  Last but not least, some gifts given to a political campaign or certain charities are also gifts you can avoid paying taxes on.  These are of course general guidelines, but make sure you speak with a tax professional to ensure you file correctly.