Giving money to child..

O

oldmontana

Senior Member
Location
Montana
Anyone familiar with IRS form 709?

I think I can use it to give one of our children money to pay off his home payment and will not be taxed on the gift as our net worth is under one million and he will not get hit with a inheritance tax when we die.
 

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Aunt Bea said:
According to this, it sounds like you are on the right track.

https://smartasset.com/retirement/lifetime-gift-tax-exemption#:~:text=Starting in 2020, the lifetime,get the $11.58 million exemption.
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Aunt Bea said:
I'm not clear on the possible tax liability to the recipient of the gift.
Click to expand...
Thanks for the link. If sounds like my son will be OK and not have to pay a tax on money I give him if I fill out a IRS form 709.
 

Just finished a book this morning called, "Old Age" by Michael Kinsley. In his last chapter he strongly suggested that the inheritance tax has to increase to pay down some of the massive debt accumulated by the citizens of the US & I suppose Canada. He feels that it's the least we could do for the next generation. Of course, this is the generation that seems to be so offended by anything that might come their way (think Dr. Seuss, Mr. Potato Head & gender neutral) that if they don't get all the money from their parents & plenty of it, they will no doubt be very offended. Me, I hope to spend a lot of money before I die. Just waiting for this pandemic phase to phase itself out.
 
The exemption is $15,000 per gift. BUT, a married couple can give a son and daughter in law a total of $60,000.
Anything more has to be reported on a Form 709. The present exemption is over $11 million dollars.
I recently had to file one.
 

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