Miami Unified Taxes Attorney
There are a number of different types of tax credits, so keeping track of the ones that will best help you and your family can be difficult. One such tax that often gets forgotten is the unified tax credit, which allows taxpayers to give a certain amount of money away each year without having to pay gift, estate, or generation-skipping transfer taxes on that amount. The unified tax credit can go a long way towards saving taxpayers from the assessment of extra taxes, whether during their lives or for the benefit of their beneficiaries. It can, however, be difficult to determine when the unified tax credit applies, so if you have questions about any monetary gifts you made in the last year or have concerns about how the unified tax credit could be applied after your death, you should speak with an experienced Miami unified taxes attorney who can advise you.
What are Unified Tax Credits?
Those who give considerable assets to family and friends are usually faced with gift taxes. Unfortunately, saving these gifts for an inheritance doesn’t always avoid the assessment of these taxes, as all property left to beneficiaries could be subject to a separate estate tax upon the taxpayer’s death. Fortunately, the IRS does provide a way, known as a unified tax credit, for taxpayers to give gifts during their lifetimes, but without accruing estate or gift taxes. The unified tax credit essentially integrates both gift and estate taxes into one system, allowing taxpayers to give up to $15,000 a year without having to file a gift tax return with the IRS.
How to Use Unified Tax Credits
The unified tax credit applies to taxpayers who make a single gift in excess of $15,000, offsetting any resulting gift taxes. If, for example, a person gave $115,000 to a relative, the taxpayer making the gift could apply the annual exclusion to reduce that gift by $15,000, decreasing the overall tax bill, dollar to dollar. Many taxpayers, on the other hand, prefer to use their unified tax credits to save on estate taxes after they pass away. In these cases, the individual would refrain from using the tax to reduce gift taxes, but could use it instead on any inheritance left to a beneficiary upon his or her death.
An Experienced Miami Unified Taxes Lawyer
Determining when to apply a unified tax credit can be more complicated than it seems, especially for those who are looking to avoid excessive estate taxes upon their deaths. For help ensuring that you are able to take advantage of these types of credits in a way that is best for you and your family, please call Miami unified taxes attorney Ronald Cutler, P.A. today. A member of our team will help you set up a free one-on-one consultation, so don’t hesitate to reach out to our office by calling 386-490-9949 or by sending us an online message. We understand that it is difficult for many people to meet during the week and so are more than happy to schedule consultations on the weekends.
