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  • Gift taxes

    Our parents have gifted us $20,000 which on the surface appears to exceed the IRS $15,000 reporting requirements. The limit however, appears to be per gifter and per recipient. If I understand correctly, our parents could actually gift $15,000 each ($30,000 total) to a single person without tax consequences or $15,000 each ($30,000 total) to myself and my spouse. Are there special precautions that need to be made to stay out of trouble? If a single check, does it be paid out of a joint checking account or does it need to be made out to me and my spouse?

  • #2
    its 15k/person/yr.
    divvy that up however you want.

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    • #3
      Mom can gift $15,000 to you and $15,000 to your spouse in one year.
      Dad can gift $15,000 to you and $15,000 to your spouse in one year.
      So in one year, from your good old Mom and Dad, you and your spouse can receive $60,000 as a gift.
      Just keep good records.

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      • #4
        The annual exclusion is $30,000/married couple/recipient.

        If gifts are made beyond that amount it doesn't necessarily cause gift tax to be owed. That's just the annual exclusion. Gifts above the annual exclusion eat into someone's lifetime exclusion which as of now is just over $11M per individual, $22M per couple.

        It's a lot more technical than that but the gist is that unless your parents are going to be worth over $22M or so you don't need to pay any gift tax.

        Your might technically have a gift tax return filing requirement with no tax due.

        And the gift tax is paid by the giver of the gift, not the recipient.

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        • #5
          Agree with all above. The requirement beyond $15k/recipient/year is to file form 709.........NOT to pay taxes.

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          • #6
            Originally posted by Peds View Post
            its 15k/person/yr.
            divvy that up however you want.
            Does that mean that it doesn't have to be reported or taxed if it is less than 15k per year?

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            • #7
              Originally posted by braindoc View Post

              Does that mean that it doesn't have to be reported or taxed if it is less than 15k per year?
              Yes

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