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2014 Estate and Gift Tax Exclusions & Exemptions

The 2014 annual gift tax exclusion has been set at $14,000 per person. This means that gifts of $14,000 or less given by an individual to another individual in the calender year of 2014 are likely not required to be reported on a federal give tax return. Gifts over this amount given by one individual to another individual are likely required to be reported on a federal gift tax return. Charitable gifts, gifts to a spouse, gifts to a political organization, gifts of medical expenses and gifts of educational expenses are not taken into account for the annual exclusion or exemption.

The gift tax exemption and estate tax exemption for 2014 is $5,340,000 per person This exemption is a lifetime exemption. Amounts over this exemption may be subject to gift or estate tax.

Please consult your tax adviser or make an appointment with our office when planning to make or if you have already made gifts to an another individual.