fmdog44
Well-known Member
- Location
- Houston, Texas
The max used to be anything less than $10,000 will not require tax paid. I want to give some money to my niece but without her having to pay tax on it.
If it's a one time gift it can be in any amount and the IRS can't touch any of it. Ask your attorney if you have questions.The max used to be anything less than $10,000 will not require tax paid. I want to give some money to my niece but without her having to pay tax on it.
It's in the mail.You could experiment. Send me $20,000 and see if the IRS notices............
From IRS Publication 559: "Example 1. The decedent gave his niece a cash gift of $8,000. It is his only gift to her in 2020. The gift isn't a taxable gift because it isn't more than the $15,000 annual exclusion."You pay the gift taxes, not the recipient. So give away!
Fmdog, I don’t think you’re in any rush to quality for this.The decedent gave his niece a cash gift of
Yes, and and as I understand it if you have a spouse you can each give $15k, for a total of $30k.Oh - just to clarify that: The gift limit for 2021 is $15,000.00 per person, PER YEAR.
Forbes wrote one of the best articles on the 2021 gift tax vs estate tax considerations:
IRS Announces Higher Estate And Gift Tax Limits For 2021v
yes, and if any tax is due, you (donor) pay it. So, again, give away!From IRS Publication 559: "Example 1. The decedent gave his niece a cash gift of $8,000. It is his only gift to her in 2020. The gift isn't a taxable gift because it isn't more than the $15,000 annual exclusion."
Reading 559 disqualifies your postyes, and if any tax is due, you (donor) pay it. So, again, give away!
Hmmm. From 559...Reading 559 disqualifies your post
Inactive=Revoked. You know what they call the graduate of medical school with the worst GPA? Doctor.Hmmm. From 559...
Estate and Gift Taxes This publication doesn't contain all the rules and exceptions for federal estate, gift, or GST taxes, nor does it contain all the rules that apply to nonresident noncitizens. If you need more information, see Form 709, Form 706, Form 706-NA, United States Estate (and Generation-Skipping Transfer) Tax Return, Estate of nonresident not a citizen of the United States, and the related instructions. This publication also doesn't contain any information about state or local taxes. That information should be available from your state and local taxing authority. The discussion below is to give you a general understanding of when estate, gift, and generation-skipping transfer (GST) taxes apply
Excerpt from page 25...
Person receiving the gift or bequest. Generally, the person who receives a gift or bequest of property from an estate won't have to pay any federal gift tax or estate tax. Also, that person won't have to pay income tax on the value of the gift or inheritance received.
And yes, I admit my CPA license is inactive since I retired. Is yours still active?
You do not need a attorney to fill out a form 709. A CPA can do it. H & R Block can do it.This is an area where I wouldn't EVER attempt to do anything without consulting an attorney skilled in this field of law. The trouble with everything involving or possibly involving the IRS is that it's a minefield and the smallest misstep can blow up in your face. Better to spend a few dollars on an attorney's advice ahead of time than to spend $$$$$s trying to clean up a mess.
I'm not particularly scared of the IRS, but recently had a CPA do our corporate taxes, as this is the first return since our incorporation, and I just want it all done right. Next year I may do the taxes myself, now that I have a correct template of our tax situation.This is an area where I wouldn't EVER attempt to do anything without consulting an attorney skilled in this field of law. The trouble with everything involving or possibly involving the IRS is that it's a minefield and the smallest misstep can blow up in your face. Better to spend a few dollars on an attorney's advice ahead of time than to spend $$$$$s trying to clean up a mess.