laws on large monetary gifts?

AdGator02 · Post by **AdGator02** » Tue Aug 12, 2008 10:00 am

was talking to someone and neither of us knew the laws on how much an individual can give and still have both parties clear for tax purposes. anyone know? i know there's some amount per year. is it total or per recipient?

TheTodd · Post by **TheTodd** » Tue Aug 12, 2008 10:03 am

Each person in the U.S. can give assets or property of up to $12,000 a year. That amount applies to each individual they gift to. This gift can be given to basically anyone without paying any gift taxes, as long as the amount gifted stays under the limit. You can give gifts, tax-free, to as many people as you wish. You can also gift an unlimited amount of property to charity and your spouse.

IHateUGAlyDawgs · Post by **IHateUGAlyDawgs** » Tue Aug 12, 2008 10:07 am

^^^unless recently changed - that's the way I understand it as well.

AdGator02 · Post by **AdGator02** » Tue Aug 12, 2008 10:17 am

cool, thanks!

how is that tracked? like say in one family, mom and dad have $36k. can they give $12k to each of three kids with no issues? can mom give $12k to child 1 and dad give $12k to same child 1 with no issues? what if the parents give to all three kids then children 2 and 3 give their $12k to child 1?

it's interesting, i've never thought about it cause i've never had to worry about big gifts [img]{SMILIES_PATH}/icon_lol.gif[/img]

a1bion · Post by **a1bion** » Tue Aug 12, 2008 12:37 pm

cool, thanks!

how is that tracked? like say in one family, mom and dad have $36k. can they give $12k to each of three kids with no issues? can mom give $12k to child 1 and dad give $12k to same child 1 with no issues?

Yes, it's called gift splitting. Each parent gives the limit to each child to maximize the amount of gifting available. You see strategies like that set up for high net worth clients who want to reduce their estate.

AdGator02 · Post by **AdGator02** » Tue Aug 12, 2008 1:52 pm

thanks! does it need to come from separate accounts in order to be officially split? is there a key word that i can google so i don't have to keep bugging you all?

TheTodd · Post by **TheTodd** » Tue Aug 12, 2008 2:38 pm

http://www.irs.gov/businesses/small/art ... 39,00.html

http://wiki.answers.com/Q/Do_monetary_g ... ted_to_IRS

AdGator02 · Post by **AdGator02** » Tue Aug 12, 2008 2:52 pm

thanks!!!

TTBHG · Post by **TTBHG** » Tue Aug 12, 2008 2:54 pm

How much is Jason giving you for kicking you out? BTW, a good CPA could hide that shit anyway.

G8rMom7 · Post by **G8rMom7** » Tue Aug 12, 2008 4:13 pm

I was reading this and thinking about calling my nephew...we really need about 20K to safely have enough to do the stuff to the house that we need. I can't get a HELOC (see other thread) and I'm not big on opening up a credit card for it...I'd rather set up a loan type thing where we can promise to pay him back over x amount of time (to be agreed to). So if he wanted to give me 10K and Bill 10K he could do so tax free?

AdGator02 · Post by **AdGator02** » Wed Aug 13, 2008 10:36 am

How much is Jason giving you for kicking you out? BTW, a good CPA could hide that shit anyway.

i was thinking of just taking his ATM card, draining the account and moving without warning, but that would just be cruel, wouldn't it? [img]{SMILIES_PATH}/icon_lol.gif[/img]

TTBHG · Post by **TTBHG** » Wed Aug 13, 2008 10:55 am

How much is Jason giving you for kicking you out? BTW, a good CPA could hide that shit anyway.
i was thinking of just taking his ATM card, draining the account and moving without warning, but that would just be cruel, wouldn't it? [img]{SMILIES_PATH}/icon_lol.gif[/img]

Just make sure you are really ready to leave. In six months after taking all of his money, don't call wanting to come back. He might tell you to fuck off. Just a hint.