During the calendar year 2008, individuals can make gifts of up to $12,000 to as many people as they'd like withou gift tax consequences.
Starting January 1, 2009, individuals will be permitted to gift $13,000 annually to individuals.
Note that this is NOT an income tax rule. Generally, gifts, regardless of the amount, do not have income tax consequences. 2009 gifts exceeding $13,000 per donee will require the donor to file a federal gift tax return and report the gift.
Note also that the State of Louisiana no longer has a state gift tax or a state inheritance tax. If you have questions about a Louisiana estate, feel free to send me an email at paul@rabalaislaw.com. I enjoy reading and responding to emails on a daily basis. Thanks.
Paul Rabalais
