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Posted: 11/4/2009 4:28:45 PM EST
I know, we all hate taxes but I need some help on this one. 90+ year old Mother in Law just sold some ground that she's owned all her life. She is at the point that she wants to give my wife and her two sisters as much as she can so a nursing home doesn't get it someday down the road. How much can she give as a gift to each child and spouse as a gift that the IRS won't tax? Would we have to pay tax on her gift? I'll give the lady credit to think of giving it to her kids instead of a nursing home
Link Posted: 11/4/2009 4:31:53 PM EST
[Last Edit: 11/4/2009 4:33:23 PM EST by sight-rail]

The gifting limit is $13K per individual.

So if you have kids or are married: your spouse, you and your children $13K apiece.

They can then turn around and gift it to your ro you could gift it back and round and round.

Editied to add since you question is longer.

your mother is taxed above the 13K limit, she bares the burden.

It's a gift, you don't pay a tax.
Link Posted: 11/4/2009 4:33:43 PM EST
[Last Edit: 11/4/2009 4:33:56 PM EST by ColourSgtBourne]
you can gift up to 13K tax free (or at least you could a few years ago). Find a good tax accountant.
Link Posted: 11/4/2009 4:43:55 PM EST
13k each on 12/31/09 and another 13k each on 1/1/10

Thats the way to do it. Just right separate checks dated as above.
Link Posted: 11/4/2009 4:58:50 PM EST
How soon until your MIL goes into a nursing home? She needs to be careful not to screw herself w/ an "improper transfer".
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