Ask a CPA

Gifts to spouses have no limitations. There are no tax consequences.
All other gifts are subject to the annual exclusion of $13,000 per donee recipient.

There is no limit to the number of $14,000 exclusions you are entitled to.

No. You can even give $14,000 to anyone.

There is no deduction for giving a gift of $14,000 ($13,000 in 2012) or less. There are no reporting requirements for gifts given or received of $14,000 or less.

There is no gift tax or inheritance tax to the Recipient.
Form 709 is required since it exceeds the current year's annual exclusion of $14,000.
You may not owe any money to the IRS because everyone is entitled to a lifetime exclusion for gifts and their estate.
In the current year, this federal lifetime exemption is up to $5,250,000 .
Cumulative gifts during one's lifetime up to this exclusion although reported, are not taxed federally. State tax laws vary. Please consult with your local CPA.

Yes, but if you are a sole proprietor you don't have to withhold Social Security and Medicare taxes. Your child must receive a W2 and report this income on his or her return.

First of all, life insurance is generally not deductible as a business expense. However, life insurance can provide a tax-free accumulation of cash value. Most importantly, the proceeds paid upon the death of the one who is named on the life insurance policy, is tax-free to the beneficiaries, if the policy is not held within a pension plan. Life insurance is often used to provide liquidity for the payment of estate taxes or the buyout of a business interest upon the death of one partner. Meet with a CPA to discuss your situation in detail. There are many types of life insurance policies. A CPA can determine which type of policy is suitable for your needs.

Insurance companies offer policies that allow for one premium payment to be made. The premium is large enough to pay for life insurance coverage for many years because part of the money is going into an investment vehicle which will fund the future cost of the insurance policy.

Generally yes. Prizes or awards are taxable and you would be taxed at the fair market value of the leather coat that you won.

Lottery winnings, prizes and awards are taxable income and reported as "other income" on line 21 of the 1040 form. Do not forget to deduct your gambling losses on Schedule A, which are only deductible to the extent of your winnings.