When it comes to filing your taxes, you want to be able to take advantage of as many tax exemptions and credits as you possibly can in order to ensure you get maximum amount for your refund. Anything that will reduce your tax liability is something worth looking into as a way to lower your tax bill. There are a few different ways you can make sure that you are taking advantage of all possible credits. One such method is to look into the gift and estate tax exemptions from a Denver accountant.
The tax you pay on a gift is due to the fact that you have transferred money or some property of value to another individual without receiving any type of financial compensation in return. There are limits in terms of the amount you can gift to another individual tax-free without having to be concerned with paying a tax on it. As always, it is a great idea to consult with your local Denver tax accountant in order to ensure you have made the transaction properly.
For 2018, the annual exclusion for gifts has risen from $14,000 to $15,000 for the year. If you are thinking about giving a gift to a loved one, you now have the ability to increase this amount by a extra thousand dollars. This can apply to anything you are looking to gift, and can be used by both individuals and businesses alike, if it applies to you.
The estate tax is a tax that you pay on the transfer of your property upon death. This can be to close family or friends, but it still applies. Your estate will be calculated for its total value, which will include all of your assets. This includes things such as your cash on hand, your securities, insurance, your stock portfolio, etc.
If you decide to give all of your inheritance to an heir, you will want to ensure that you have accounted for all the factors that can increase their estate tax. The recent passage of the tax bill in congress has changed the amount a person can gift in their inheritance without having to deal with a tax bill. This amount changed from $5 million to $10 million, and will run from the years 2018 through 2025.
If you are need of having your taxes done in the Denver area, there is no better option than going with Bloch, Rothman, and Associates. Whether you are dealing with a large estate tax bill or are just looking to get the biggest possible tax return for you and your family, we are your preferred choice for tax accountants.
We are a full service Denver and Aurora accounting firm that offers personal and affordable accounting and tax services for both individuals and businesses. We pride ourselves on providing the best possible customer service and advice to our clients in the industry. Contact us today
and we will be happy to help you receive the highest return possible.