Tax consequence of gift from family member

[dortar]

My MIL wants to gift a truck to my husband. The value of the truck is $25,000.  From a tax standpoint, can she note that the gift is half to me and half to my husband, to be within the tax-free gift maximums?  Is it necessary for my husband and me to report it on our tax return, and if yes, where and how is the gift reported?

[mwcpa]

you do not report the gift... your MIL must file a "gift tax" return to note the gift and the election to split it between you and your husband..... if she fails to file a gift tax return she may incur a gift tax cost....

[Deleted]

If its an equal split within the annual exclusion, why does he have to file?

[mwcpa]

If its an equal split within the annual exclusion, why does he have to file?

to make it clear.... if the title will be in husband's name only (I assumed this from the original poster's opening line...."My MIL wants to gift a truck to my husband") .... that's a big reason why.... over disclosure never hurts, failing to dislcose can and does.....

[Deleted]

True. Thanks.

[dortar]

Thanks for the information!

[rangerj]

A couple of notes:
The recipient of a gift is NEVER taxed by the federal government. The person who gives a gift can give an amount of $13,000 for 2012, and $14,000 for 2013 to as many persons as he/she wants without being required to file a gift tax return, or pay any gift tax. That having been said, if the donor gives a donee a gift in excess of the annual exclusion amount then he/she MUST file a gift tax return and report the gift. Doing so may or may not trigger gift tax depending upon whether the donor has reached his/her $1,000,000 lifetime exclusion for gifts. The excess over the annual exclusion amount, e.g. $13,000 for 2012, reduces the lifetime exclusion until the $1M is used up, thus the reporting reqiurement. In the above question the husband is the donee if his name is the only one on the title and the gift would be clearly over the annual exclusion limit, and would require reporting (filing a gift tax return). Whether, or not, there would be any gift tax due would depend upon the donee's $1M lifetime exclusion remaining. The "joint gift" argument, in light of the title, would be bovine excrement.

[mwcpa]

"has reached his/her $1,000,000 lifetime exclusion for gifts"

$5.25 million for 2013, cummulative.

[rangerj]

Thanks for the correction MW. An occasional senior moment. And to think I just paid for that information in a tax seminar. Go figure!~