thanx red
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?
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.
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?