What are the guide lines for gifts to family to reduce tax liability?

Family members would be my children and grandchildren.

What are the guide lines for gifts to family to reduce tax liability?
Gifts to family members are not deductible for income tax purposes. A gift has no affect on your income tax liability.





Gifts up to $12,000 per year per person are exempt from the gift tax.





And if gifting to minors, you may want to consult the Uniform Gift to Minors Act. I do not know what it covers but I believe there is an issue if the gift is over a certain dollar amount. Not a tax liability but an access restriction.
Reply:Gifts to family members won't reduce your tax liability. If you give more than the annual exclusion amount ($12,000 for 2006) you may have to PAY gift taxes.
Reply:anything under $10,000 per year is a non taxable gift.


anything over that is taxable.