5 Key Areas to Watch to Keep Your Benefit Plan in Compliance
Employers who offer employee benefit plans like health insurance or retirement benefits are governed by the Employee Retirement Income Security Act...
Did you make large gifts to your children, grandchildren or other heirs last year? If so, it’s important to determine whether you’re required to file a 2018 gift tax return — or whether filing one would be beneficial even if it isn’t required.
Filing requirements
Generally, you must file a gift tax return for 2018 if, during the tax year, you made gifts:
Keep in mind that you’ll owe gift tax only to the extent an exclusion doesn’t apply and you’ve used up your lifetime gift and estate tax exemption ($11.18 million for 2018). As you can see, some transfers require a return even if you don’t owe tax.
No return required
No gift tax return is required if your gifts for the year consist solely of gifts that are tax-free because they qualify as:
But if you transferred hard-to-value property, such as artwork or interests in a family-owned business, consider filing a gift tax return even if you’re not required to. Adequate disclosure of the transfer in a return triggers the statute of limitations, generally preventing the IRS from challenging your valuation more than three years after you file.
Be ready for April 15
The gift tax return deadline is the same as the income tax filing deadline. For 2018 returns, it’s April 15, 2019 — or October 15, 2019, if you file for an extension. But keep in mind that, if you owe gift tax, the payment deadline is April 15, regardless of whether you file for an extension. If you’re not sure whether you must (or should) file a 2018 gift tax return, contact us.
© 2019
Employers who offer employee benefit plans like health insurance or retirement benefits are governed by the Employee Retirement Income Security Act...
QuickBooks Online is an important piece of software because it helps ensure the accuracy of your financial records with a little help from your bank...
Under federal law, most organizations with an employee benefit plan that has 100 or more participants with account balances at the beginning of the...