Lending money to a friend or family member can feel like the right thing to do during difficult times. But without proper planning, a simple personal loan can trigger unexpected tax consequences under Internal Revenue Service rules.
What Are the Tax Consequences of Employee Gifts?
The holidays are a time for gratitude, and many employers show appreciation by giving gifts to their staff. Different types of gifts can have different tax consequences.
So whether it’s a gift card, a holiday turkey, or a year-end bonus, it’s important to know how the IRS will treat the gift.
Making a Tax-Free Gift in 2025 and 2026
As the year winds down, you may be hoping to combine smart estate tax planning with tax savings using the annual gift tax exclusion.
Helping a Family Member Buy a Home
Making a family loan isn’t the only way to assist a loved one with purchasing a home. If you aren’t concerned about being paid back, a straightforward option is gifting cash. In 2025, you can give up to $19,000 to anyone without federal gift tax consequences under the gift tax annual exclusion.
Business Gifts: What’s the Tax Treatment?
During the holiday giving season, keep the following tax limits in mind. Your business can deduct only up to $25 per person per year for gifts to recipients such as clients and business partners. You can also generally deduct $25 per person per year for employee gifts.
Use It or Lose It: Your 2024 Gift Tax Annual Exclusion
As the year winds down, you may want to combine estate planning with tax savings by taking advantage of the gift tax annual exclusion. It allows you to give cash or property up to a specified amount to an unlimited number of family members and friends each year without gift tax implications.