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 mknherhappy 
Member
Joined: Apr 2003  IA, USA
 Posts: 1154 Feedback: 0% (0) |
Posted: 4/30/2012 4:22:06 PM
THE IMAGE ABOVE IS A PAID ADVERTISEMENT Thank you. |
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Posted: 4/30/2012 4:29:05 PM
Are you married?
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DiddyMas
Jack Russell Terrorist Apologist
Team Member
Joined: Jan 2007 TN, USA
Posts: 3563 Feedback: 100% (35) Link To This Post |
Posted: 4/30/2012 4:30:56 PM
How many annual exclusions are available?
The annual exclusion applies to gifts to each donee. In other words, if you give each of your children $11,000 in 2002-2005, $12,000 in 2006-2008, and $13,000 on or after January 1, 2009, the annual exclusion applies to each gift. http://www.irs.gov/businesses/small/article/0,,id=108139,00.html |
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Posted: 4/30/2012 4:31:40 PM
They bumped the limit up recently, but I can not exactly remember was it is. I think it is close to $13-15k now that is tax free.
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Posted: 4/30/2012 4:50:44 PM
Originally Posted By Herc:
Are you married? Yes, and ignorant of most tax laws... The money was supposed to go to my boys, but because of an error in the will, it went to me. So I just want to get it where it was supposed to go. Thanks for the help. |
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Posted: 4/30/2012 4:59:05 PM
Ages of boys?
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Posted: 4/30/2012 5:05:24 PM
Originally Posted By Him:
Ages of boys? 18 and 22, one graduating from high school, the other college. |
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Posted: 4/30/2012 5:09:40 PM
Originally Posted By mknherhappy:
Originally Posted By Herc:
Are you married? Yes, and ignorant of most tax laws... The money was supposed to go to my boys, but because of an error in the will, it went to me. So I just want to get it where it was supposed to go. Thanks for the help. The limit is 13k per year. You can give each son 13k, and your wife can give each son 13k. You and your wife will have to file Form 709. The form asks if you consent to the gift given by your spouse. As long as you both consent to the gift, you can give each son 26k. |
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Posted: 4/30/2012 5:12:09 PM
Originally Posted By Herc:
Originally Posted By mknherhappy:
Originally Posted By Herc:
Are you married? Yes, and ignorant of most tax laws... The money was supposed to go to my boys, but because of an error in the will, it went to me. So I just want to get it where it was supposed to go. Thanks for the help. The limit is 13k per year. You can give each son 13k, and your wife can give each son 13k. You and your wife will have to file Form 709. The form asks if you consent to the gift given by your spouse. As long as you both consent to the gift, you can give each son 26k. Thank you all for your help and information! |
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Posted: 5/2/2012 10:29:17 PM
Each parent Can give $13,000 per kid per year. You are in the clear.
Do not put the money in your younger son's name if you are applying for financial help for college. It may disqualify him for some benefits if he has more than -0- net worth. |
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Posted: 5/3/2012 11:13:18 AM
First off, find a new tax guy.
Anyone in the business of tax prep should know this amount. |
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Sparky4Life
Member
Team Member
Joined: Apr 2012 NJ, USA
Posts: 323 Feedback: 0% (0) Link To This Post |
Posted: 5/6/2012 11:47:07 PM
You can give your kids as much as you want. If you give less than $13K/year you are free and clear of even having to report it. If you give more than $13K that just means that you have to file a form 709. It does not mean that you have to pay any taxes on it. You only pay taxes when you pass your lifetime limit which is now up to $5 million.
You will only pay taxes on money you gift over $5 million, that counts both during your life and what comes out of your estate after you die. So if you never plan on having $5 million, you can give as much as you want away at any time. If you think you may have $5 million, then you may want to stick to the $13K limit for now so that money isn't reported. |
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