Estate and Gift Tax Accounting

Estate and gift tax accounting involves tracking and reporting the transfer of wealth between individuals, either during a person's life (gifts) or after their death (estates). When someone gives money or property worth more than a certain amount, it may incur a gift tax. Similarly, when a person passes away, their estate may be subject to estate taxes based on its total value. Proper accounting ensures that these transfers are accurately reported to the IRS, helping to determine any tax liabilities owed, and it can also help in estate planning to minimize taxes for heirs.