Naples Unified Taxes Attorney
Giving gifts with significant monetary value to friends or family members, gifting high-value assets to charitable organizations, or leaving valuable property to another entity through estate planning tools can result in tax consequences for you and, in some cases, for the recipient of the gift. Depending upon the situation, it may be possible to apply the unified tax credit in order to reduce tax liability. When tax lawyers and advisers discuss unified taxes, they are referring to the unified tax credit and the way in which it may be able to lower the total tax liability. If you are planning to give or receive a gift, or if you have another tax situation in which the unified tax credit might apply, you should contact a Naples unified taxes attorney to find out more about tax liability and the unified tax credit.
What Are Unified Taxes
What are unified taxes, and when does a unified tax credit apply to a tax situation? As The Balance explains, the unified tax credit “applies to two or more different tax credits that apply to similar taxes.” In other words, when a tax credit is applicable to two or more taxes, the tax credit is a unified tax credit. In order for a unified tax credit to be applicable to a particular tax situation, the taxes involved must be distinct from one another but must have similarities to one another, as well.
Gift taxes and inheritance taxes are the most common example of application of the unified tax credit. The matter of paying a tax on a gift or an inheritance can involve what is known as a unified tax credit, or more simply a unified credit. This means that the tax credit will apply to both the gift and inheritance tax. In these circumstances, the unified tax credit sets a specific value of assets that can be gifted by a person during his or her lifetime before a gift tax or an inheritance tax will apply. To be clear, the way in which assets are gifted from one party to another, and the value of the gift, can play a role in determining how it will be taxed and what the tax consequences will be for the gifter (or the gifter’s estate), as well as for the recipient.
If you have questions about how the unified tax credit might apply to your situation, or if you have concerns about whether your assets and intended gifts will exceed the unified tax credit amount, you should seek advice about how best to limit tax liability based on your specific circumstances.
Contact Ronald Cutler, P.A. for Assistance with Unified Taxes
Ronald Cutler, P.A. can assist clients with a wide range of tax matters, including issues pertaining to the unified tax credit and matters related to gift and inheritance taxes. Whether you need assistance transferring or gifting assets while minimizing tax liability, or you want to learn more about whether the unified tax credit could benefit you, it is important to contact a Naples unified taxes attorney at Ronald Cutler, P.A. for more information.