The lull of late summer often brings with it a shift in focus. As businesses move into the last quarter of the year, the specter of year-end tax planning starts to loom large. But did you know that now might be the perfect time to consider another form of planning: gift giving?
While gift-giving may not currently feel like a top priority given the season, an article from Ward and Smith, P.A., suggests it might be the perfect season to consider making substantial gifts to benefit one’s family. This is particularly true from a tax planning perspective.
Why now, you ask? As it turns out, the value of many assets is typically at its lowest during the summer months. This is particularly true for real estate, making it a favorable time to gift such assets. Furthermore, with the United States Federal Tax Exemption at a historical high, and rumors of a possible decrease on the horizon, taking advantage of the exemption at its peak could prove beneficial.
Of course, family members aren’t the only ones who can benefit from your generosity. Charitable donations can also offer considerable tax benefits while supporting worthy causes.
Given that tax planning can often feel like navigating a labyrinth, seeking professional advice can ensure you maximize the benefits of your gifts while adhering to legal obligations.
As always, it’s important to keep in mind that each individual’s financial situation is unique and therefore, strategies that are beneficial for one person might not necessarily be best for another. So, if you’re considering making a substantial gift this year, reaching out to a tax professional or financial advisor to discuss your options would be a prudent first step.