Re: I can't believe this is legal or is it?


<novel2006novel@xxxxxxxxx> wrote
I found this online as tax saving tip:


Go back and re-read it.




Gift if you can. You can give up to $12,000 away tax-free to each
person you choose. This is typically for retirees with significant
assets who want to gift money now, rather than leave it for estate
taxes later.

What if I am not retired? What if I do not have significant assets?
Can I give my niece 2000 bucks - because she is so cute - and deduct it
from the taxes?




You're confusing gift taxes from income taxes. Gifts under $23k per person,
per year are free of gift tax. But that doesn't mean you get any income tax
break for gifting money to other than a charity.




--
Paul A. Thomas, CPA
Athens, Georgia










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