JK Harris Says Gift-Giving can be a Good Tax Move

NORTH CHARLESTON, S.C. – Are you looking to reduce the size of your estate and want to help out your loved ones, too? If so, JK Harris & Company, the nation’s largest and most successful tax resolution company, says giving someone property or money may be worth serious consideration.

Taxpayers are allowed to give a gift valued up to $11,000 tax-free. For those looking to trim down the size of their estate and provide a valuable gift to someone they care about, getting out the wrapping paper may make a lot of sense.

"Giving gifts is a great way to reduce your estate and it also allows you to provide tax-free financial help to someone," said Cheryl Drum, an Enrolled Agent for JK Harris & Company. "The recipient of the gift doesn’t have to pay tax and the donor may give up to $11,000 per year to an individual, thereby reducing the value of their estate."

Drum went on to say that "if you are married, you and your spouse can give separate gifts. As an example, you and your spouse could give your child and their spouse $44,000 a year without any tax implications."

According to the Internal Revenue Service, if the gift exceeds more than $11,000, it is necessary to report the total amount and taxes could be due.

The IRS states that a gift is made when property, including money, or the use of income from property, is given without expecting to receive something of equal value in return. If something is sold at less than its value or an interest-free or reduced-interest loan is given, one may be making a gift.

The following gifts do not count against the annual limit: Tuition or medical expenses that you pay directly to an educational or medical institution for someone’s benefit; gifts to your spouse; gifts to a political organization for its use; gifts to charities.

Besides tax resolution services, JK Harris & Company prepares thousands of tax returns annually for individuals and small businesses.

JK Harris & Company, LLC (www.jkharris.com) is based in North Charleston, S.C. JK Harris & Company is the nation’s largest tax resolution company with over 470 satellite offices in 45 states and has serviced over 130,000 clients since its founding in 1997 by John K. Harris. JK Harris also provides services for consumer and commercial debt, student loan debt, investment fraud, financial planning, small business services, mortgage services, tax return preparation, and assisting individuals who require support for an IRS audit.