Whether the IRS can tax gifts depends on whether you are giving or receiving the gift. If you give any one person a gift or gifts that are valued at more than $12,000, you are required to report this to the IRS, and you may have to pay taxes on it. However, if you have received the gift, you do not have to report it or pay gift or income taxes on it.

These gifts can include anything from money to property. And be careful when selling something. If you sell it for less than its actual value, it may be considered a gift.

There are some gifts that are not taxable, such as the following:

• Tuition or medical expenses you pay directly to an educational or medical institution on someone’s behalf.
• Gifts to your spouse.
• Gifts to a political organization.
• Gifts to charities.

Married couples have slightly different rules. Both you and your spouse can give separate gifts up to the annual limit of $12,000 to the same person without it being taxable. And, with your spouse’s consent, you can make a single gift up to $24,000 to the same person without it being taxable.

For more information on Gift Taxes, you can visit www.irs.gov.

We have numerous experts who do nothing everyday except work with people with tax issues and advocate on their behalf to get them out of trouble. We’re good at it. But we can’t perform miracles. Although the results we have brought about make some people think we do. However, when the taxpayer expects a miracle we remind them that the reality is that some debts just have to be dealt with.

In addressing tax problems, the best solution is always prevention. But sometimes there is trouble, and we let you know what can be done and what you can expect from JK Harris.

Above all, let’s share ideas and solutions. You may wish to comment on this blog and the topics presented. But first read the guidelines. We’ll be reviewing comments to make sure they are appropriate and of interest to the blog viewers who come to this for ideas, suggestions and help.

John Harris
www.jkharris.com