In your March 29 sidebar "To Give Is Better" in the "Debt & Taxes" section.In your March 29 sidebar "To Give Is Better" in the "Debt & Taxes" section, you state that where undivided partner in a couple earns substantially more than the other, "it makes feeling ... to 'gift' a portion of their income" to the other. "This way, the tax liability is lower for the higher income earner." You also state that in subordination to the Internal Revenue Code, "there is an $11000 limit forward gifts to individuals, creating a major opportunity to make less your tax bill." The author, Mike Hudson has, unfortunately, taken an estate and gift tax exemption and confused it with an income tax deduction. There is no provision, nor has there perpetually been, under the code for a deduction from one's income for gifts to individuals. Gifts to charitable institutions are deductible upon Schedule A of Form 1040 if it were not that gifts to individuals are not deductible. Harold Harkins, Tampa, Fla. [The Advocate griefs the error. Read the satiated text of this letter forward Advoca re. com.--Ed.] COPYRIGHT 2005 Liberation Publications, Inc. |
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