News You Can Use: What makes a gift taxable?
While most gifts to charities like Duke are tax deductible, other gifts–like those to family and friends–may actually increase your tax liability. The IRS recently released this Tax Tip to help taxpayers determine whether gifts of money or property are subject to federal gift tax. As one example, generally speaking, gifts to another person are not subject to gift tax as long as they do not exceed the annual exclusion amount ($14,000 for 2016). While a taxpayer may deduct gifts to charitable organizations, gifts to friends and family typically are not deductible. There are many points to consider before making a gift, whether to charity or to another person, and we encourage you to review the IRS guidelines and speak with your financial advisor before making a gift.