ripvanwinkle
Well-Known Member
All that is necessary for evil to succeed is that good men do nothing - Edmund Burke 1729 -1797
Joined: Jan 9, 2011 22:36:42 GMT -5
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Post by ripvanwinkle on Jan 26, 2018 23:42:51 GMT -5
I read the IRS link on gift giving but I'm still not sure on it. If I give up to $13k to my daughter for my grand daughter, isn't that income to my daughter? If I'm reading this right, I pay the taxes on what I give. Form 709. And what is the tax rate?
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taz157
Senior Associate
Joined: Dec 20, 2010 20:50:06 GMT -5
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Post by taz157 on Jan 26, 2018 23:58:17 GMT -5
No, they don’t need to pay tax on it and you don’t need to file a Form 709. You can give up to $14K per year per year tax-free.
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ripvanwinkle
Well-Known Member
All that is necessary for evil to succeed is that good men do nothing - Edmund Burke 1729 -1797
Joined: Jan 9, 2011 22:36:42 GMT -5
Posts: 1,342
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Post by ripvanwinkle on Jan 27, 2018 1:14:27 GMT -5
So what is IRS form 709 for?
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taz157
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Post by taz157 on Jan 27, 2018 7:24:29 GMT -5
Gift tax return if you were required to file. You aren’t required to file at all assuming your gifts are not more than $14K per person per year.
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regina24601
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Post by regina24601 on Jan 27, 2018 7:35:19 GMT -5
$15k starting in 2018.  |
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taz157
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Joined: Dec 20, 2010 20:50:06 GMT -5
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Post by taz157 on Jan 27, 2018 7:57:11 GMT -5
$15k starting in 2018. Thanks! 👍 |
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Deleted
Joined: Apr 17, 2024 21:33:36 GMT -5
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Post by Deleted on Jan 30, 2018 10:17:22 GMT -5
Even if you do gift over the 15K you're not going to pay taxes on it. It's just a record to come off of your lifetime maximum of something like 6 million. If you go over THAT, then your estate pays gift taxes over the amount. I'd keep it under though just because I would consider filing an extra form a PIA.  Also, the 15K exclusion is gift per person. So, you could give your granddaughter 15K AND your daughter 15K at the same time. Still don't need to file anything. |
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rangerj
Junior Member
Joined: Jan 21, 2011 13:39:35 GMT -5
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Post by rangerj on Feb 11, 2018 20:57:59 GMT -5
As of 2016 the lifetime exclusion was 5.43 million. However, the estate tax and gift tax exclusions are "unified". It gets complicated. In re. your question, you and your spouse can give an unlimited number of people the annual exclusion amount each year and NOT be required to file a gift tax return. If you give one person a gift in excess of the annual exclusion amount you would be required to file a gift tax return, BUT would NOT owe any gift tax unless you exceeded the lifetime exclusion amount. The gift tax rate of tax is 40% and the tax is due from the person who gives the gift (donor). The estate tax and the gift tax are "TRANSFER" taxes and in my opinion antiquated. Why should the donor be taxed for transferring property he/she accumulated, or purchased, with money he or she has already paid tax on? Cheers.
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