By Joy Taylor
From Kiplinger’s Personal Finance
Financial planners and tax professionals often advise clients to include gifting in their year-end tax planning strategies. There are three main reasons to do this.
First, your gifts can help family members and friends. Second, because gifts aren’t subject to income tax, the recipient isn’t taxed on the amount received. Third, it’s unlikely you will owe federal gift taxes because of the currently high lifetime federal gift-and-estate-tax exemption.
For people who die in 2022, this exemption is $12,060,000. And in 2023 it increases to $12,920,000. This amount is slated to drop to about $5.5 million after 2025 unless Congress extends it. But most gifts you make now won’t trigger post-2025 estate tax bills….