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A Gift For You [WORK]


A Gift For You [WORK]

Your recipient can redeem an Apple Gift Card or App Store & iTunes gift card to their Apple Account balance. Then they can use that balance to buy subscriptions like Apple Music, Apple Arcade, or Apple TV+. Or they can buy apps, movies, books, and more from Apple.

The donor is generally responsible for paying the gift tax. Under special arrangements the donee may agree to pay the tax instead. Please visit with your tax professional if you are considering this type of arrangement.

Making a gift or leaving your estate to your heirs does not ordinarily affect your federal income tax. You cannot deduct the value of gifts you make (other than gifts that are deductible charitable contributions). If you are not sure whether the gift tax or the estate tax applies to your situation, refer to Publication 559, Survivors, Executors, and Administrators.

The annual exclusion applies to gifts to each donee. In other words, if you give each of your children $17,000 in 2023, the annual exclusion applies to each gift. The table below shows the annual exclusion amount applicable in the year of the gift.

Finally, people who make gifts as a part of their overall estate and financial plan often engage the services of both attorneys and CPAs, EAs and other professionals. The attorney usually handles wills, trusts and transfer documents that are involved and reviews the impact of documents on the gift tax return and overall plan. The CPA or EA often handles the actual return preparation and some representation of the donor in matters with the IRS. However, some attorneys handle all of the work. CPAs or EAs may also handle most of the work, but cannot take care of wills, trusts, deeds and other matters where a law license is required. In addition, other professionals (such as appraisers, surveyors, financial advisors and others) may need to be engaged during this time

The IRS will provide an account transcript for gift tax returns when Form 4506-T, Request for Transcript of Tax Return, is properly completed and submitted with substantiation. The transcript may be requested via fax or by mail using Form 4506-T. Upon receipt and verification (including matching current taxpayer and taxpayer representative records with the information on the submitted Form 4506-T), a hardcopy transcript will be mailed to the address of record. Incomplete or unsubstantiated requests will be rejected, and a Notice will be sent to the Requester. No fees apply.

Form 4506-T, Request for Transcript of Return, and instructionsPDF are available on Form 4506-T has multiple uses and special attention must be taken when completing the form for a gift tax inquiry. Complete the form using the printed instructions paying close attention to the following:

It is also acceptable to send a written request to the IRS to secure a gift tax transcript. This method should be reserved for taxpayer's that do not have record of which tax year(s) a gift tax return was filed. The written request must include language requesting a determination of "All Gift Tax Returns Filed" for the taxpayer. Use the same fax number or mailing address provided in the Form 4506-T Instructions. The requester must be substantiated with documentation as outlined above for a request using Form 4506-T. Unsubstantiated requests will be rejected.

The IRS will provide a copy of a gift tax return when Form 4506, Request for Copy of Tax Return, is properly completed and submitted with substantiation and payment. Upon receipt and verification (including matching current taxpayer and taxpayer representative records with the information on the submitted Form 4506-T), a copy of the original tax return will be mailed as requested. Incomplete or unsubstantiated requests will be rejected and a Notice will be sent to the Requester. A $50.00 fee per tax return applies.

Form 4506, Request for Copy of Tax ReturnPDF, is used to request a copy of previously filed tax returns with all attachments. The form and instructions are available on Form 4506 has multiple uses and special attention must be taken when completing the form for a gift tax inquiry. Complete the form using the printed instructions paying close attention to the following:

Individuals taking advantage of the increased gift tax exclusion amount in effect from 2018 to 2025 will not be adversely impacted after 2025 when the exclusion amount is scheduled to drop to pre-2018 levels. For more information, see the related Tax Reform page.

Last December, at dinner with another couple, I encountered a dreaded holiday season scenario: Between the main courses and the coffee, my friends handed me a beautifully wrapped box. Inside was an incredibly thoughtful gift.

That may have been a poor decision, says Diane Gottsman, an etiquette expert and owner of the Protocol School of Texas. "If someone gives you a gift and you don't have one in return, the last thing you want to do is make an excuse that sounds inauthentic," she says.

I'm hardly the first person to opt for this tactic and won't be the last. But if you don't want to be caught unawares next time, here's what etiquette pros say to do when you receive an unexpected gift.

You may also remark how thoughtful the other person has been or express that you're surprised to be receiving something from them. "Whatever you say, keep the tone light and lively. The joy is giving the gift for the giver," she adds.

From there, you can decide whether or not to reciprocate with a gift of your own, a move that etiquette experts say is entirely optional. If you do, don't feel like you have to run out and grab something right away, or give the illusion that their gift is already in transit, as I did.

And don't feel pressured to go tit-for-tat with someone who may have given you a gift that would be out of your normal price range, says Elaine Swann, a lifestyle and etiquette expert and founder of the Swann School of Protocol.

One way to make sure you're keeping things in check: giving cash. Swann, who recently published a guide to holiday tipping and gifting in partnership with Zelle, says giving someone the gift of digital cash is perfectly within the bounds of good etiquette.

Naturally, you don't want to make it look like you're paying someone for their gift, the same way you might send them money if they covered lunch. Rather, use the app's "notes" feature to indicate that the cash is a gift and to personalize it for the recipient, says Swann.

Commonly known as a down payment gift, these funds work differently compared to traditional home loans and come with a few fundamental rules. In turn, using gift money for a mortgage down payment often comes with a lot of questions, like how much can be gifted, what qualifies as a "gift," and who can provide the funds and associated gift letter.

Receiving gift money for a mortgage down payment is a great way to jump-start your financial well-being when saving for homeownership. If a parent, sibling, or grandparent offers to gift funds for your mortgage expenses, you may not think to disclose this information to your lender. From your perspective, as long as you arrive at closing with enough funds, you should be okay, right Unfortunately, it's not that simple.

When applying for a mortgage loan, the lender needs a clear picture of your financial situation. This process known as underwriting includes collecting information about your employment, income, and assets. This is why a lender will ask for copies of your most recent bank statements. The purpose of reviewing your bank statements is to ensure you have enough in reserves for mortgage expenses. But sometimes, a family member offers to pay these expenses as a gift to you.

For a conventional mortgage loan through Fannie Mae or Freddie Mac, the down payment gift must come from family (by blood, marriage, adoption, or legal guardianship). Fiancés and domestic partners also count as family.

For FHA loans, the total amount of the mortgage down payment can be gifted. Depending on the borrower's credit score, FHA loans will require a minimum of 3.5% down (with a credit score of 580 or more) and 10% down (with a credit score between 570 and 500). While this may shape the amount of the down payment required, the entire amount can still be gifted from an eligible donor.

While traditionally gifted for first-time buyers needing help with their entire down payment, a borrower can use gift funds toward a second home. However, if the buyer uses a down payment gift to purchase a second home or investment property, they are required to pay at least 5% of the down payment and the rest can be gifted.

Repaying money that was initially documented as a down payment gift is considered mortgage fraud, which is a crime that can result in serious legal ramifications. Mistating gift funds can also put your loan qualification in jeopardy, as all forms of lending need to factor in your debt-to-income ratio.

Before you can use gift funds for your down payment and/or closing costs, you need to submit a gift letter to your lender. This letter provides documentation defining the parties involved and confirms that the funds are indeed a gift.

Generally, gift letters are written as short statements on behalf of the donor expressing the funds as a non-repayable gift. A sample gift letter for a mortgage might include a couple of sentences like:

I/We [name of donor(s)] have gifted [($) dollar amount] to the borrower(s) [name of borrower(s)], my/our [relationship to borrower].

Setting the expectation that the funds are a gift and not to be repaid is a key component of the letter. Most letter templates will include the other required pieces of information (e.g. date, addresses, relationship, signature) on a line by line basis.

According to the IRS gift tax exclusions in 2022, any down payment gift below $16,000 does not have to be reported. Beyond that amount, the funds must be reported on the donor's gift tax return. In turn, parents can collectively give up to $32,000 per child without needing to report those funds to the IRS. 153554b96e


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