I want to give my son & his wife $24,000 gift, do I have to pay gift tax?
|
|
| Author |
Message |
EveandK B
Yahoo User
|
 Posted: Thu Jul 17, 2008 3:10 pm Post subject: I want to give my son & his wife $24,000 gift, do I have to pay gift tax? |
 |
|
| If I’m not mistaking as long as I have not give more than 1M dollars worth of gifts during my life time, I can give $12K to different people as a gift per year. The problem is that my son and his wife have a sure account so when I give each person a gift of $12K. they would have a total of $24K in there account, would that cause a problem with taxes for me? Thanks for you answers |
|
| Back to top |
|
 |
Okie Gal
Yahoo User
|
| Posted: Thu Jul 17, 2008 3:16 pm Post subject: |
|
|
| be sure and make one check for $12K and the other for $12K, paid to each one separately. It doesn't matter then where they deposit it, or just spend it. |
|
| Back to top |
|
|
Connie
Yahoo User
|
| Posted: Thu Jul 17, 2008 3:17 pm Post subject: |
|
|
| Write a check to him, and another check to her.Here's a quote from source:"Gift Taxes IRS Tax Tip 2008-15If you gave any one person gifts in 2007 that are valued at more than $12,000, you must report the total gifts to the Internal Revenue Service and may have to pay tax on the gifts. The person who receives your gift does not have to report the gift to the IRS or pay gift or income tax on its value.Gifts include money and property, including the use of property without expecting to receive something of equal value in return. If you sell something at less than its value or make an interest-free or reduced-interest loan, you may be making a gift.There are some exceptions to the tax rules on gifts. The following gifts generally are not taxable and do not count against the annual limit:Tuition or Medical Expenses that you pay directly to an educational or medical institution for someone's benefit Gifts to your Spouse Gifts to a Political Organization for its use Gifts to Charities If you are married, both you and your spouse can give separate gifts of up to the annual limit of $12,000 to the same person without making a taxable gift.Alternatively, with consent from your spouse, you can make a gift of up to $24,000 ($12,000 x 2) to the same person without making a taxable gift. This is commonly known as splitting gifts between spouses. Essentially, it means a gift by you or your spouse to a third person can be considered as made one-half by each of you provided there is consent by both spouses.For more information, get the IRS Publication 950, Introduction to Estate and Gift Taxes, IRS Form 709, United States Gift Tax Return, and Instructions for Form 709. They are available at the IRS Web site at IRS.gov in the Forms and Publications section or by calling 800-TAX-FORM (800-829-3676).Links:Publication 950, Introduction to Estate and Gift Taxes (PDF 44K)Form 709, United States Gift (And Generation-Skipping Transfer) Tax Return (PDF 300K) Form 709, Instructions (PDF 79K)" |
|
| Back to top |
|
|
Steve
Yahoo User
|
| Posted: Thu Jul 17, 2008 3:42 pm Post subject: |
|
|
| No. If you give them any more than that, then you may have to pay gift tax. |
|
| Back to top |
|
|
ninasgramma
Yahoo User
|
| Posted: Thu Jul 17, 2008 5:05 pm Post subject: |
|
|
| There is no tax reporting required or tax owed from what you are planning to do. Just designate each gift separately.If you wire the amounts into the account, you might write them a letter stating that 12K is a gift to your son and 12K is a gift to his wife.Otherwise, write separate checks. |
|
| Back to top |
|
|
Judy
Yahoo User
|
| Posted: Thu Jul 17, 2008 10:29 pm Post subject: |
|
|
| You are correct about the million dollar exemption, but if you give them each a check for $12,000, you don't even have to file a gift tax return. Whether they put the checks into the same account doesn't matter. |
|
| Back to top |
|
|
|
Source:  Powered by Yahoo! Answers
|
FAQ
Register
Log in
