Tax Strategy & PlanningAugust 31, 2026· 8 min read
How to get an EIN number
Cost, lost numbers, W-9 entries, LLC ordering and foreign applicants each have their own answer. Start here and we will point you at the right one.
12+
Years Serving NYC
50
States Covered
5★
Rated on Yelp
150,000+
Returns Filed
Open
Evenings & Weekends
Section 01
New York Estate Tax and Lifetime Gifts
New York’s estate tax is assessed based on the value of your estate at the time of your death. This means gifts given during your lifetime are not included in the taxable estate calculation. By making significant gifts before death, individuals can effectively reduce the size of their estate and potentially lower or avoid New York estate taxes.
However, New York does include certain gifts made within three years of death when calculating the taxable estate. This rule, known as the “clawback provision,” applies to gifts made on or after April 1, 2014, but only if the decedent was a New York resident at the time. This exception can complicate estate planning, especially for individuals making substantial gifts later in life.
Section 02
Federal Gift Tax Considerations
While New York doesn’t impose a gift tax, the federal government does. For 2023, the federal annual gift tax exclusion allows individuals to give up to $17,000 per recipient ($34,000 for married couples) without triggering gift tax or requiring the filing of a gift tax return. Gifts exceeding this amount may reduce your lifetime estate and gift tax exemption, which is $12.92 million in 2023.
If your total lifetime gifts exceed this exemption, the excess may be subject to a federal gift tax of up to 40%. Even if no tax is owed, large gifts must be reported on IRS Form 709, the federal gift tax return.
Section 03
Final Thoughts
Lifetime gifting can be a powerful tool to minimize New York estate tax, but it’s essential to account for federal gift tax rules and New York’s clawback provision. Consulting with a qualified tax advisor or estate planning attorney can help you navigate these complexities and create a strategy that aligns with your financial goals.
No cost to start
Questions about your specific situation?
Fifteen minutes with a CPA who handles this every week. We will walk you through your options — no sales pitch, no obligation.
Client reviews
What our clients say
“George has prepared and maintained the corporate accounting and provided consultant services for my company for a number of years. He has always done an outstanding, professional and courteous job. I feel that his rates are very fair and he provides a great value for the cost.”
“Excellent service and very professional. George and his team have been handling my business taxes for years and I couldn't be happier with the results. They are always available to answer questions and provide expert advice.”
“I've been working with Dimov CPA for both personal and business taxes. Their attention to detail and knowledge of tax law has saved me thousands. Highly recommend to anyone looking for a reliable CPA in NYC.”
Keep reading
More insights selected for you
Tax Strategy & PlanningAugust 26, 2026· 8 min read
Tourist and city taxes on a New York hotel stay
Is there a tourist tax in New York City? Not under that name. What visitors pay is a hotel occupancy tax stacked on top of three separate sales taxes.
Tax Strategy & PlanningAugust 26, 2026· 8 min read
Transfer taxes on a New York property sale
Who pays New York transfer taxes, at what rate, and how they affect your basis. NYS, NYC RPTT, and the buyer paid mansion tax, explained by a New York CPA.
Ready when you are
Let's talk about the next step
A CPA will review your situation and give you a straight answer. No commitment, no jargon.
