Posted on 04/03/2024 1:18:33 PM PDT by Red Badger
thanx red
The annual exclusion is a set dollar amount that you may gift someone without reporting it to the IRS on a gift tax return. The 2023 gift tax exclusion was $17,000, and the 2024 gift tax exclusion is $18,000. ...
If you give away more than the annual exclusion amount in cash or assets (for example, stocks, land, a new car) to any one person during the tax year, you will need to file a gift tax return in addition to your federal tax return the following year.
That doesn’t mean you have to pay a gift tax — it just means you need to submit IRS Form 709 to disclose the gift.
Does Xi have to disclose all the gifting to Biden?
Yes. To the General Assembly...............
I wish I had a huge gift tax problem.
One imagines the Bolsheviks who wrote these laws sitting around griping about how unfair it was that kid they grew up with got lots of free money from his rich parents. :)
Generally speaking, hasn’t the income that’s being gifted already been subject to tax? If I made $100,000 last year, declared it on my returns, and paid taxes, why does the Fed need to know where I give it away?
does this work the same for a “gift” from a trust?
So what happens if you’ve given away (in prior years) more than $5 million but less than $13.61 million, and 2026 comes around? How will this impact the taxation of your estate when you die in a subsequent year?
“Let’s say you live by Grandma, so for convenience, we're going to put you on Grandma's bank account. Guess what just happened?” Picciurro says. “If you're put as a joint [owner] on a bank account with somebody and you have the right to take the money out at any time, essentially Grandma is giving you a gift.” This applies to joint accounts when the other owner is not your spouse.
A lot of people have joint bank accounts with elderly parents or relatives - for the sake of convenience and security. How the heck would the IRS enforce a stupid rule like this.
Bribes are a business expense.
Most of the examples are gifts to family. Can a gift be given to a friend or acquaintance?
This subject is actually near deer to my heart. My wife just inherited $140,000 due to a loss in her side of the family. She plans on giving half of it to her brother who didn’t inherit anything. My understanding is we can give him the whole 70,000 which I understand is over the annual limit but we simply file the 709 to say that we did it and we won’t be taxed on it. And we wouldn’t actually have to pay taxes until we exceeded $13 million in gifts to one individual . Am I correct?
You are correct.
Thank you for the response. :)
Sounds correct, but ask a accountant.......
The reason is that the Feds apply the amount given to the recipient’s modified AGI; they use the MAGI to compute the extra premium amounts you owe for Medicare Part D, etc. Therefore, all that federally-exempt income that your investments earn is indeed taxed and deducted from your federal benefit.
By having the banks report it to them.
For the non-wealthy it's not really a problem, and wealthy people still have substantial estate and gift tax exemptions.
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