Q:
Subject: Lifetime exclusion for gift taxes?
Dear Tax Guru,
On your website you say that the lifetime exclusion for gift taxes is 1 million dollars. My tax accountant in California says that the IRS publications say that it is 1 million dollars for estate taxes but $385,000 for gift taxes.
Can you enlighten me on this matter.
Thank you,
A:
Your accountant is obviously using reference materials that are seriously out of date. That is very scary in the ever changing world of taxes to think that a tax guide from at least five years ago is still relevant today.
You can see the exemption amounts on my website.
You can also download the IRS’s forms and instructions from the IRS website.
Good luck.
Kerry Kerstetter
Follow-Up:
Dear Mr Kerstetter,
Thank you very much for responding to my e-mail.
Sincerely,
Tax Guru - Ker$tetter Letter 