Gift Tax Planning & Exemption Services in Chicago, IL
A single wire transfer, deed change, or check written to your grandchild can create federal reporting obligations you may not have anticipated. At Lewis.cpa, our gift tax CPA team helps individuals, families, and closely held business owners use the federal and Illinois exemption rules to move wealth on their own terms, not the IRS's.
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Guidance on the Federal Gift Tax and Lifetime Exemption
A single gift to a child, grandchild, or family member can affect your lifetime gift tax exemption without you realizing it. Our CPAs help you understand the annual gift exclusion, federal lifetime exemption, and how Illinois estate tax rules interact with federal requirements, so each gift is structured intentionally and with full awareness of potential tax implications.
For 2026, you can give up to $19,000 per recipient (or $38,000 per recipient for married couples) without touching your lifetime exemption or filing a return. Gifts above that amount count against your federal lifetime gift and estate tax exemption of $15,000,000, and once that's used up, gifts are taxed at rates as high as 40%.
We help you use both limits strategically, whether your goal is funding a grandchild's education, transferring a family business, or simply keeping your estate below Illinois's separate $4,000,000 threshold.
Our Gift Tax Planning Services
We use our extensive knowledge of federal and Illinois gift and estate tax rules to help you transfer wealth efficiently while meeting all applicable IRS reporting requirements.
Lifetime Gift Tax Exemption Tracking
We monitor how much of your $15,000,000 federal lifetime exemption you've used, model the impact of future gifts, and keep your exemption tracking accurate year after year.
Annual Exclusion Gifting Plans
We design a systematic gifting schedule using the $19,000 per-recipient annual exclusion, helping you move wealth out of your taxable estate without ever touching your lifetime exemption.
Federal Gift Tax Return Preparation
We prepare and file IRS Form 709 accurately, including gift-splitting elections for married couples and valuation documentation for gifts involving real estate or business interests.
Appreciated Asset Gifting Analysis
We compare the tax impact of gifting appreciated stock or property now against holding it until death, factoring in carryover basis, step-up in basis, and your overall estate size.
Education and Medical Exclusion Planning
We identify opportunities where direct payments to educational institutions or medical providers may qualify for an unlimited tax exclusion, a valuable provision many families overlook.
Illinois Estate Tax Coordination
Since Illinois taxes estates above $4,000,000 with no portability between spouses, we integrate your gifting strategy with credit shelter trusts and other planning tools that protect both spouses' exemptions.
Trust-Based Gifting Strategies
We help structure gifts through irrevocable trusts, including ILITs and SLATs, when a client wants to transfer wealth while maintaining some oversight over how it's used.
Gift Tax Compliance Review
We examine your past gift tax filings, or identify missing filings where needed, to help ensure your records are complete before they create complications during estate administration.
Tax and Estate Planning for Closely Held Businesses
Our expert team provides tailored solutions for closely held businesses to minimize tax liabilities, ensure smooth business succession, and preserve wealth for future generations.
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Plan Your Next Gift
the Right Way
Don't let a gift trigger a tax surprise. Contact our team of gift tax CPAs to review your exemption and plan your next transfer.
Contact Us TodayGift Tax Planning for Individuals and Families
Are you planning to give money or property to children, grandchildren, or other family members? Whether it's a single significant gift or an ongoing annual giving strategy, our team helps you understand exactly how much you can give, what needs to be reported on an estate and gift tax return, and how each gift affects your long-term estate plan. We work alongside you to fit your gift-giving tax services around your family's goals and your state of residence.
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Why Choose Our Gift Tax CPA?
Your financial security is our priority, which is why we provide gift-giving tax services focused on accuracy, compliance, and long-term planning, not just this year's return.
Remote Services
Nationwide Reach
Deep Expertise
Solutions-Driven
Our Gift Tax Planning Process
We've refined our approach to gift and lifetime exemption planning since 1986, staying current on federal limits and Illinois-specific rules.
Schedule an Appointment
Schedule an appointment with our gift tax CPAs to review your assets, your giving goals, and your current use of the lifetime exemption.
Gather Your Documents
Assemble records on planned gifts, recipient information, asset valuations, and any prior gift tax returns you've filed.
Meet with Us
Meet with us, remotely or in our office, to walk through how each gift affects your lifetime exemption and your Illinois estate tax exposure.
Strategy and Filing
We finalize your gifting strategy, prepare any required Form 709 filings, and document your lifetime exemption use so nothing gets lost between tax years.
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FAQs
How much can I gift without paying gift tax in 2026?
You can give up to $19,000 per recipient in 2026 without filing a gift tax return or using any of your lifetime exemption. Married couples can combine gifts for $38,000 per recipient. Amounts above that threshold generally reduce your $15 million federal lifetime gift and estate tax exemption rather than creating an immediate gift tax liability.
Do I need to file a gift tax return if I don't owe any tax?
Often, yes. If you give more than $19,000 to one person in a year, you generally must file Form 709 even though no tax is due, since the return tracks how much of your lifetime exemption you've used.
Is there a separate Illinois gift tax?
No. Illinois doesn’t impose its own gift tax. However, Illinois does tax estates above $4,000,000, and lifetime gifts that reduce your taxable estate can be part of a strategy to stay under that threshold.
What is the federal estate and gift tax exemption for 2026?
The federal lifetime exemption is $15,000,000 per person for 2026, shared between gifts made during your lifetime and your estate at death. The One Big Beautiful Bill Act set this figure, signed July 4, 2025.
Should I gift assets now or leave them in my estate?
It depends on the asset. Gifted assets carry your original cost basis, which can create a capital gains bill when the recipient sells. Assets left in your estate receive a step-up in basis to fair market value at death. The ideal choice depends on the asset's basis, its appreciation, and your overall estate size.
Can a CPA help with gift tax planning, or do I need an attorney?
A CPA can prepare your gift tax returns, track your lifetime exemption, and model the tax impact of different gifting strategies. If you need a trust drafted as part of your plan, we'll coordinate with a licensed estate planning attorney to ensure the legal documents and the tax strategy work together.
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Reach Out to Your Gift Tax CPA
Ready to plan your next gift? Contact our team of gift tax CPAs to schedule a consultation.