When tax season rolls around, Jameson Van Houten knows that it is essential that individuals know plenty of information to help them through the more difficult parts of the tax process. One thing that helps individuals each year when they do their taxes is knowledge of how charitable giving and gifting to family and friends affects their taxes. Jameson Van Houten, as a leading financial expert, wants to share important information for those who want to get a head start on their taxes this year.
When it comes to financial gift giving, it is important to know what does and does not count as a tax free gift. A tax free gift is one that can be given without the giver having to pay tax on it. Each year, an individual can give gifts of up to $14,000 that are not taxes, and couples can give twice that amount. Jameson Van Houten would also like to point out that a number of different kinds of gifts that qualify within this tax free limit. If, for example, you pay for education necessities for another individual, such as tuition or books, that may fall under tax free gifts. Paying for medical expenses may also qualify, however, not every expense will qualify as part of the tax free gift, so be sure to do your research to see which do and do not apply. Gifting to a trust may also qualify as a tax free gift if made directly to the trust says Jameson Van Houten.
Another thing that individuals should be aware of when they are getting ready to do taxes is how charitable giving applies to their taxes. Charitable monetary gifts may be deductible if they are made by the end of 2014. However, receipts should always be kept as record. Additionally, donated items like furniture, clothing, and household items can be deducted as well. However, in order to use these deductions, individuals must keep itemized lists of their donations, and must also keep track of the value of each item. Jameson Van Houten knows that keeping in mind this information will help you use these rules to your best advantage and ensure that taxes in 2015 are a breeze. Start planning now to get a head start and file well before the April 15th deadline!