Bob Sandler <bob_usenet[at]yahoo.com> wrote:

- quote -

It's an election. I think it's done on a gift tax return,
but I'm not certain.

Stu

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- quote -

You mean aside from having to sign the line that
acknowledges it on the gift tax return??

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Norwood, MA 02062
www.woods-financial.com

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- quote -

Do they have to document that agreement in some way?

Bob Sandler

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phughes200[at]hotmail.com wrote:

- quote -

If only one spouse makes a gift to an individual, it can still
be $22,000 if the other spouse agrees to have it treated as
half by each under section 2513.

Stu

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phughes200[at]hotmail.com wrote:

- quote -

The lifetime gift exclusion is $1,000,000, now and for the
forseable future. Perhaps you are thinking of the estate tax
exclusion (currently $2,000,000 and expected to increase
dramatically until 2010. They are no longer in lockstep.

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Moderator:
This may be either a duplicate post or an omitted post.
I do not recall reading them and found them as I was
cleaning up some disk space
================================================== ==========

Depends.

Anybody is allowed to give anybody 11,000 a year without
reporting it or filing a gift return (form 709). If both of
your parents made the gift then the maximum gift is $22,000
per year per individual. If your dad gave it to you and your
wife then he can give 22,000 total or 44,000 if his wife is
also gifting.

Therefore, if your dad gives you the gift (one to one) the
limit is 11,000. Since 20,000 is more then 11,000 he needs
to file a gift return. There will be no taxes due until he
gives you more the 1,000,000 (this year's limit) over this
lifetime. This overall limit will be changing over the next
couple years. Bear in mind gifts over 11,000 (2005 limit)
will impact what he can pass on tax-free when he dies.

The gift is tax-free to you.

I would suggest that you document this in writing that it is
a gift with no expectation of repayment.

The above is a simplified version of gifting. For more
information see your accountant or read publication 709 at
www.irs.gov

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"z969307[at]gmail.com" <fhabib[at]gmail.com> wrote:

- quote -

Yes, on a gift tax return.

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Norwood, MA 02062
www.woods-financial.com

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Any one person may gift any one other person up to $11,000
per year without reporting anything.

This includes any Christmas, Birthday or other gift(s).

If Dad is married and if you are married, this can add up to
$44,000 per year. If Dad is single and you are single have
him gift you $11,000 now and 9,000 on Jan. 1, 2006. If both
are single and he gifts you the whole $20K he will need to
file a gift tax return, you will have to do nothing.

Missy Doyle

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fhabib[at]gmail.com (z969307[at]gmail.com) asked:

- quote -

The gift would not be taxable income to you, in any event.

Your dad can give you up to $11,000 per year, with no
obligation to report and no tax consequences. He could add
an additional $11,000 as a gift from your mom (assuming
she's still in the picture) -- or he could give you $11,000
this year, and an additional $9,000 (or the full $11,000,
for that matter) on January 1, 2006 -- with no reporting and
no tax issue.

If he alone gives you in excess of $11,000 in one year,
there is a "gift tax" consequence, but that can be treated
as a part of the estate -- and your dad should consult his
tax advisor or attorney on exactly how to handle this.

Bill

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z969307[at]gmail.com wrote:

- quote -

If your dad gives $10k to you and $10k to your spouse, there
is no reporting requirement. If your dad gives any ONE
person more than $11,000, in the course of the year, a gift
tax return is to be filed.

Depending on the size of your dad's estate, there may never
be a tax due on the gift (combination of lifetime gifts &
estate over $1,500,000). If a tax ever were to become due,
it would be your dad's (estate's) obligation to pay it.

In order to avoid the gift tax reporting, your dad could
give you $10,000 this year and $10,000 at the beginning of
next year.

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"z969307[at]gmail.com" <fhabib[at]gmail.com> writes:

- quote -

It can be. See Form 709 and its instructions.

- quote -

If what you said is literally what happens (your dad, alone,
giving $20k to you, alone), then there would be a $9,000
taxable gift (and to add to the confusion, even though the
gift is taxable, there would almost definitely be no tax due
on it at the current time).

However, if your dad and his wife jointly gave $20k to you,
it would be not be taxable. Likewise, if your dad gave $10k
to you and $10k to your wife, it would not be taxable.

- quote -

Form 709.

- quote -

Yes, if given by him alone to you alone.

--
Rich Carreiro rlcarr[at]animato.arlington.ma.us

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z969307[at]gmail.com at fhabib[at]gmail.com wrote:

- quote -

Anyone can give gifts totaling up to $11,000 to any number
of individuals in any one year. After that, you are
supposed to file a Federal Gift tax return to record
potentially taxable gifts. Each person has a $1,000,000
lifetime exemption which will be reduced by the amount those
gifts are over $11,000. Until the exemption is exhausted,
no tax is actually due. The purpose of the return is to
record the decrease in the exemption.

All freely provided advice guarantee correct or double your
money back

Frank S. Duke, Jr. CPA
Cincinnati, OH USA

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z969307[at]gmail.com wrote:

- quote -

GIFTS (cash or property) are NOT taxable to the giftee. Is
that precise enough for you?

- quote -

If the gift exceeds $11,000 to an individual in a given
year, the GIFTOR is required to file a Gift Tax return (form
709) to report the excess. Most likely, this was not result
in any tax being due at this time, but will reduce his
$1,000,000 lifetime gift exclusion accordingly. Tax, if any,
would be determined at death.

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I was wondering if a cash gift is taxable, I wasn't able to
find any precise information.

My dad has agreed to give me $20K towards rehabbing a house
i bought, would this gift be taxable? How would he go about
reporting it? does he even need to report this?

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