Starting in 2018, the lifetime gift tax exemption is $11.18 million. This means that you can give up to $11.18 million in gifts over the course of your lifetime without ever having to pay gift tax on it. For married couples, both spouses get the $11.18 million exemption. This means that if you are married, you and your spouse can give away a total of $22.36 million before paying the gift tax.
So now instead of 11.18 lifetime gift tax exemption, I have $11.175 million in lifetime exclusives left, $23.355 million joint. You don’t even need to use an A/B Bypass living trust anymore, unless you are above those limits… Isn’t life great or what!
Or the other thing is just to buy the car, register the car in my name, and let someone else use it exclusively. The difference is if that person gets into an accident, it goes on my insurance instead of theirs, and it exposes me to liability.
The third option would be, as I am sure a lot of people do, create an LLC, put the car under the LLC, hire the family member as an employee with a company car…Damn, you small biz owners are so lucky with all the variables and now QBI breaks… lol…
But why bother with #2-3 when the gift tax limit is is so ridiculously large.
Besides, I’m supporting those shovel ready green jobs!
