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Tax Laws - Gifting to Children

Old 05-26-2018, 08:26 PM
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Default Tax Laws - Gifting to Children

Okay say I want to gift 20k to each of my boys this year. Does it count as income for either party - do I have to count it as income in 19' or do the kids have to claim as income in 19'.

Thanks
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Old 05-26-2018, 08:36 PM
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$14K to each person is the limit I believe without taxes getting involved<br />but you do have a life time limit of 5 mil or so without taxes, but you would need to file federal tax paperwork to keep track of it<br /><br />but then if you are married the wife could gift up to $14k to each too<br /><br />no idea of what your state does
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Last edited by 99yam40; 05-26-2018 at 08:41 PM.
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Old 05-26-2018, 08:36 PM
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Pops gifts us kids $14k per year, which is the maximum amount to be tax free.
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Old 05-26-2018, 08:39 PM
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well 14k better than none.

Thanks guys appreciate it
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Old 05-26-2018, 08:44 PM
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Originally Posted by magua View Post
well 14k better than none.

Thanks guys appreciate it
If your kids are married, you can gift the son or daughter-in-law as well for a total of $28k per year.
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Old 05-26-2018, 08:53 PM
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Has this money already been taxed when you made it?
if not like stock you have, you can gift the stock to your tax exempt charity, so you do not have to pay capital gains on it and they will not either.
then you can hold on to the money you would have been giving them anyway and gift that to your sons.
Looking at ways to lessen the taxes on certain income can get interesting
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Old 05-26-2018, 08:54 PM
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I don't know if this applies to everyone no matter your location, but in 2017, a parent could give approximately $14,000 to each child without the parent paying taxes. I don't believe this gift is also taxed on the child.

Something new to me is there is a life-time limit one can give away if you file a form (709?) for each year more than the $14,000 (or whatever the years' limit) is gifted. The total amount is kind of a moving Target - in 2017, the limit was approximately $5.5 mil.

This is not advice, just me rambling on... :-)
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Old 05-26-2018, 08:58 PM
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Married? Spouse can donate $14K to each child as well without incurring gift tax.
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Old 05-26-2018, 09:06 PM
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Originally Posted by magua View Post
Okay say I want to gift 20k to each of my boys this year. Does it count as income for either party - do I have to count it as income in 19' or do the kids have to claim as income in 19'.

Thanks
Neither. A gift is never income for either the donor or the donee. Next question.
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Old 05-26-2018, 09:37 PM
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A person can gift any other person or persons $14K each each year without getting into the reporting issues.
if married the spouse can do the same.

if you gift stock, land, etc.
the cost basis is transferred also
so if they sell they will have to pay capital gains on what ever they get above cost basis
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Old 05-26-2018, 10:17 PM
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Dad,
. It's fine if I pay taxes on it. Just gift me however much you want and don't worry about it. Spoke to my other siblings and they said they are fine and its alright to give me their share.
Thanks from your loyal son.
Seriously though, will it vary from state to state? I don't know.
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Old 05-27-2018, 04:22 AM
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Originally Posted by flcatcher1 View Post
Married? Spouse can donate $14K to each child as well without incurring gift tax.
Yes. If you are married you can easily do $20k. $14k from you to son and $6k from wife to son. If you are not married but they are you can do similar ($14k to son, $6k to son's wife). Just make sure to write separate checks in all cases.

This can be done every year without tax issues. ($14k gift per person per year)
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Old 05-27-2018, 08:06 AM
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Originally Posted by Pez Vela View Post
Neither. A gift is never income for either the donor or the donee. Next question.
correct in that it isn't income but tax may be payable

as mentioned:

individual can give 14k to another individual, as many of those other individuals there are. Got 10 kids? that's 140k total at 14k each. They all have spouses or boyfriends you can give to them too, another 14k each so 280k. Not to be outdone by your wife? She gives 280k as well now you're up to 560k. But she wants to give more so her boyfriend gets 14k now you're into it for 575k from joint assets. No one has to pay anything as long as it is 14k or less per person-to-person gift. You make it 14,001, and that $1 is taxable.
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Old 05-27-2018, 08:29 AM
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Just wanted to throw out the fact that I'm available for adoption
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Old 05-27-2018, 08:32 AM
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Feel free to give me the other 6000 And if you do I promise to go down to Tampa and take a girl out on a boat
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Old 05-27-2018, 08:59 AM
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Originally Posted by crazybeard View Post
You make it 14,001, and that $1 is taxable.
Well, the annual per person gift tax exclusion amount is $15,000 for 2018, and if the donor were to gift $15,001, the $1 would be reportable, but not taxable until death, and then, only if the donor's combined taxable estate and lifetime taxable gifts exceeded the $11,180,000 exclusion amount for 2018.
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Old 05-27-2018, 09:41 AM
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Didn't know it could be deferred. That's cool.
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Old 05-27-2018, 09:55 AM
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Originally Posted by twollman View Post
k
If your kids are married, you can gift the son or daughter-in-law as well for a total of $28k per year.
Husband and wife can each gift $14k to child, and husband and wife can each gift $14k each to child's spouse. That's $56k total.
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Old 05-27-2018, 10:18 AM
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Originally Posted by twollman View Post


If your kids are married, you can gift the son or daughter-in-law as well for a total of $28k per year.
And if you are married your wife can gift as well and in you example the total would be $56k per year.
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Old 05-27-2018, 06:52 PM
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Thanks for the responses guys. Sounds like a whole lot of gifting, lol.
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