First, I want to address the power of giving within the context of taxable events.  However, I want to wrap-up the power of giving within a philosophical perspective.

What is a Gift?

According to the IRS, a gift is “any transfer to an individual, either directly or indirectly, where full consideration (measured in money or money’s worth) is not received in return.” [1]

What are some exclusions according to the IRS?

1. Annual exclusions – This year, 2018, the annual exclusion is $15,000. Thus, a married couple can give a total of $30,000 for each donee. Please note: the exclusion amount is different for gifts made to spouses who are not U.S. citizens.[2]
2. Educational and Medical exclusions – These qualifying transfers are not limited and are not subject to the gift tax. Both types of expenses must be paid directly to the qualifying educational organization or medical professional or medical organization. [3]
3. Spousal gifts – Generally, of course there are exceptions as above with non-U.S. citizens, gifts to spouses are not taxable and do not require a gift tax return regardless of the amount of these gifts.[4]
4. Political & Certain Organizational gifts – The gift tax does not apply to a transfer to political organizations (as defined in the Internal Revenue Code (“IRC”), section 527(a)(1) and certain exempt organizations (as defined in the IRC, section 501).[5]

Beyond the IRS

• Volunteering – Perhaps the most satisfying part of practicing law, or any business, is taking valuable time and giving it away – no expectation of billable hour, profit, or return. Typically, volunteering is a foreign concept, or volunteering gets rolled up into pro-bono work that was going to be written off in the first place.  Every business with proper time management has time to give freely.  Giving is a core value of our firm and has provided opportunities to serve our community and neighbors where money falls short in value and means. The pursuit of a giver / volunteer is not self but others, which brings me to my final point.
• Dead Sea v. Lake – A body of water that only receives refuses to provide for other life and dies itself. However, a lake freely receives and freely gives, providing for abundant life for all who come for a drink.  While this is purely associated with philosophical perspectives, when the heart of a business is service, everyone receives and the lake continues to grow.

We want to serve!  Please send us volunteer opportunities around the Prosper, Celina, McKinney  Texas area.  Call us at 877.622.5840 or email me at [email protected] . We are so thankful for the opportunities we have received lately to become a part of the community, and we are excited for the future possibilities.

 

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[1] https://www.irs.gov/businesses/small-businesses-self-employed/frequently-asked-questions-on-gift-taxes

[2] See, https://www.irs.gov/pub/irs-pdf/i709.pdf

[3] See, 26 CFR 25.2503-6 Exclusion for certain qualified transfer for tuition or medical expenses; https://www.law.cornell.edu/cfr/text/26/25.2503-6

[4] See, https://www.irs.gov/pub/irs-pdf/i709.pdf

[5] See, https://www.irs.gov/pub/irs-pdf/i709.pdf 

Photo – Wikimedia Commons

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