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Avoiding estate tax by giving multiple gifts
What are the US gift tax rules for gifts from non-US persons?US Income Tax and GiftsWhen does giving a gift “count” for tax year?Gifts under the annual gift tax exemption FROM minor children?Gift tax with family member gifting real estateAvoiding tax complexities of REITsGiving kids annual tax free gift of $28,000Do political campaign contributions count as gifts for tax purposes?Can yearly tax free gifts to a person in the U.S. be sent in multiple checks?Gift tax on gifts from multiple, unrelated individuals
From my understanding in the US, a father can give an individual gift of $15,000 to a child (or anyone) without any tax liabilities and without impacting the lifetime allowance. If the father wants to give more money, can he make a gift to a third party he trusts (e.g., his brother/uncle of his son) who then makes a gift to the child, or is that tax fraud?
united-states gift-tax estate-planning
asked 1 hour ago
StrongBadStrongBad
695516
add a comment |
From my understanding in the US, a father can give an individual gift of $15,000 to a child (or anyone) without any tax liabilities and without impacting the lifetime allowance. If the father wants to give more money, can he make a gift to a third party he trusts (e.g., his brother/uncle of his son) who then makes a gift to the child, or is that tax fraud?
united-states gift-tax estate-planning
asked 1 hour ago
StrongBadStrongBad
695516
add a comment |
From my understanding in the US, a father can give an individual gift of $15,000 to a child (or anyone) without any tax liabilities and without impacting the lifetime allowance. If the father wants to give more money, can he make a gift to a third party he trusts (e.g., his brother/uncle of his son) who then makes a gift to the child, or is that tax fraud?
united-states gift-tax estate-planning
asked 1 hour ago
StrongBadStrongBad
695516
From my understanding in the US, a father can give an individual gift of $15,000 to a child (or anyone) without any tax liabilities and without impacting the lifetime allowance. If the father wants to give more money, can he make a gift to a third party he trusts (e.g., his brother/uncle of his son) who then makes a gift to the child, or is that tax fraud?
united-states gift-tax estate-planning
united-states gift-tax estate-planning
asked 1 hour ago
StrongBadStrongBad
695516
asked 1 hour ago
StrongBadStrongBad
695516
asked 1 hour ago
StrongBadStrongBad
695516
asked 1 hour ago
StrongBadStrongBad
695516
asked 1 hour ago
StrongBadStrongBad
695516
695516
add a comment |
add a comment |
1 Answer
1
active
oldest
votes
If you give a gift with stings attached, then it isn't a gift. Thus it would be viewed as trying to get around the tax law. The law regarding this is the Step Transaction Doctrine.
But a spouse can also give a gift, and you can give a gift to your child's spouse. Thus a couple can give another couple 4x the limit each year.
If the child is in school then the giver can pay tuition directly and not worry about the limit. They can't send it to the student, they have to send it to the school.
Of course exceeding the limit in a year, does require paperwork, but the lifetime allowance is $11.4M as of 2019. Current tax law has this number adjust for inflation. If this is is something to worry about, consult a tax attorney to see how to do this legally.
edited 26 mins ago
JoeTaxpayer♦
146k23236473
answered 1 hour ago
mhoran_psprepmhoran_psprep
69.3k896174
1
Nice. The first sentence is key to so many gift questions...
– TTT
54 mins ago
1
There were a couple things I'd have posted, but 2 minor points don't make a full answer. If my edits are unwelcome, you can roll back. I won't take offense.
– JoeTaxpayer♦
24 mins ago
@JoeTaxpayer the step transaction stuff is perfect.
– StrongBad
24 secs ago
add a comment |
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1 Answer
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1 Answer
1
active
oldest
votes
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active
oldest
votes
If you give a gift with stings attached, then it isn't a gift. Thus it would be viewed as trying to get around the tax law. The law regarding this is the Step Transaction Doctrine.
But a spouse can also give a gift, and you can give a gift to your child's spouse. Thus a couple can give another couple 4x the limit each year.
If the child is in school then the giver can pay tuition directly and not worry about the limit. They can't send it to the student, they have to send it to the school.
Of course exceeding the limit in a year, does require paperwork, but the lifetime allowance is $11.4M as of 2019. Current tax law has this number adjust for inflation. If this is is something to worry about, consult a tax attorney to see how to do this legally.
edited 26 mins ago
JoeTaxpayer♦
146k23236473
answered 1 hour ago
mhoran_psprepmhoran_psprep
69.3k896174
1
Nice. The first sentence is key to so many gift questions...
– TTT
54 mins ago
1
There were a couple things I'd have posted, but 2 minor points don't make a full answer. If my edits are unwelcome, you can roll back. I won't take offense.
– JoeTaxpayer♦
24 mins ago
@JoeTaxpayer the step transaction stuff is perfect.
– StrongBad
24 secs ago
add a comment |
If you give a gift with stings attached, then it isn't a gift. Thus it would be viewed as trying to get around the tax law. The law regarding this is the Step Transaction Doctrine.
But a spouse can also give a gift, and you can give a gift to your child's spouse. Thus a couple can give another couple 4x the limit each year.
If the child is in school then the giver can pay tuition directly and not worry about the limit. They can't send it to the student, they have to send it to the school.
Of course exceeding the limit in a year, does require paperwork, but the lifetime allowance is $11.4M as of 2019. Current tax law has this number adjust for inflation. If this is is something to worry about, consult a tax attorney to see how to do this legally.
edited 26 mins ago
JoeTaxpayer♦
146k23236473
answered 1 hour ago
mhoran_psprepmhoran_psprep
69.3k896174
1
Nice. The first sentence is key to so many gift questions...
– TTT
54 mins ago
1
There were a couple things I'd have posted, but 2 minor points don't make a full answer. If my edits are unwelcome, you can roll back. I won't take offense.
– JoeTaxpayer♦
24 mins ago
@JoeTaxpayer the step transaction stuff is perfect.
– StrongBad
24 secs ago
add a comment |
If you give a gift with stings attached, then it isn't a gift. Thus it would be viewed as trying to get around the tax law. The law regarding this is the Step Transaction Doctrine.
But a spouse can also give a gift, and you can give a gift to your child's spouse. Thus a couple can give another couple 4x the limit each year.
If the child is in school then the giver can pay tuition directly and not worry about the limit. They can't send it to the student, they have to send it to the school.
Of course exceeding the limit in a year, does require paperwork, but the lifetime allowance is $11.4M as of 2019. Current tax law has this number adjust for inflation. If this is is something to worry about, consult a tax attorney to see how to do this legally.
edited 26 mins ago
JoeTaxpayer♦
146k23236473
answered 1 hour ago
mhoran_psprepmhoran_psprep
69.3k896174
If you give a gift with stings attached, then it isn't a gift. Thus it would be viewed as trying to get around the tax law. The law regarding this is the Step Transaction Doctrine.
But a spouse can also give a gift, and you can give a gift to your child's spouse. Thus a couple can give another couple 4x the limit each year.
If the child is in school then the giver can pay tuition directly and not worry about the limit. They can't send it to the student, they have to send it to the school.
Of course exceeding the limit in a year, does require paperwork, but the lifetime allowance is $11.4M as of 2019. Current tax law has this number adjust for inflation. If this is is something to worry about, consult a tax attorney to see how to do this legally.
edited 26 mins ago
JoeTaxpayer♦
146k23236473
answered 1 hour ago
mhoran_psprepmhoran_psprep
69.3k896174
edited 26 mins ago
JoeTaxpayer♦
146k23236473
edited 26 mins ago
JoeTaxpayer♦
146k23236473
edited 26 mins ago
JoeTaxpayer♦
146k23236473
146k23236473
answered 1 hour ago
mhoran_psprepmhoran_psprep
69.3k896174
answered 1 hour ago
mhoran_psprepmhoran_psprep
69.3k896174
answered 1 hour ago
mhoran_psprepmhoran_psprep
69.3k896174
69.3k896174
1
Nice. The first sentence is key to so many gift questions...
– TTT
54 mins ago
1
There were a couple things I'd have posted, but 2 minor points don't make a full answer. If my edits are unwelcome, you can roll back. I won't take offense.
– JoeTaxpayer♦
24 mins ago
@JoeTaxpayer the step transaction stuff is perfect.
– StrongBad
24 secs ago
add a comment |
1
Nice. The first sentence is key to so many gift questions...
– TTT
54 mins ago
1
There were a couple things I'd have posted, but 2 minor points don't make a full answer. If my edits are unwelcome, you can roll back. I won't take offense.
– JoeTaxpayer♦
24 mins ago
@JoeTaxpayer the step transaction stuff is perfect.
– StrongBad
24 secs ago
1
1
Nice. The first sentence is key to so many gift questions...
– TTT
54 mins ago
Nice. The first sentence is key to so many gift questions...
– TTT
54 mins ago
1
1
There were a couple things I'd have posted, but 2 minor points don't make a full answer. If my edits are unwelcome, you can roll back. I won't take offense.
– JoeTaxpayer♦
24 mins ago
There were a couple things I'd have posted, but 2 minor points don't make a full answer. If my edits are unwelcome, you can roll back. I won't take offense.
– JoeTaxpayer♦
24 mins ago
@JoeTaxpayer the step transaction stuff is perfect.
– StrongBad
24 secs ago
@JoeTaxpayer the step transaction stuff is perfect.
– StrongBad
24 secs ago
add a comment |
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