There is a charitable gift tax deduction. Most people are aware of the favorable income tax treatment for gifts to charities. Few think about the gift tax consequences when they make annual donations. Most gifts to charities qualify for the charitable gift tax deduction and do not result in the payment of a gift tax. Sometimes a gift tax return is required to be filed.
Some donors employ trusts to either pay the income or a remainder interest to a charity.
These trusts require significant planning and tax knowledge. Only taxable gifts can generate a gift tax. Most donors rarely make such a large gift in any one year. Because of all of these rules, gift taxes are rarely required to be paid. Call us now.