If You Made Gifts in 2018, You May Need to File a Gift Tax Return
If you made gifts in 2018 in excess of the gift tax annual exclusion amount - $15,000 per donee in 2018, or $30,000 if a husband and wife elect to split gifts - you must file a gift tax return and apply your lifetime gift tax exemption to report these gifts.
If you made a gift to a Trust that has the potential to distribute property to a grandchild, it is important to file a gift tax return to have a clear record of the Generation-Skipping Transfer (GST) tax exemption allocated to the Trust.
In 2018, each person had a gift tax exemption of $11,180,000, reduced by the value of any prior lifetime gifts. A gift tax return to report gifts made in 2018 is due on April 15, 2019, but may be extended until October 15, 2019.
As always, if you have any questions, please feel free to contact us here or call us at 585.258.2800.