William Brenner <wbrenner[at]nospamplease.net> wrote:
- quote -

The issue will be whether it is a gift by one person or by
them both. In a separate property state it's safest to give
two checks, to have both spouses sign one check, or elect
gift splitting on a 709.

Stu

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Missy wrote:
- quote -

How about writing one check for $24,000 on a spousal joint
checking account?

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"Mark Freeland" <nNeEwTs[at]sonic.net> wrote:
- quote -

Good point. I should have said that treatment applies to
gifts of community property. Even if you're in a community
property state, if you make a gift of separate property you
will have to file a gift tax return and elect gift splitting
to have that effect.

Stu

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"Stuart A. Bronstein" <spamtrap[at]sbcglobal.net> wrote:

- quote -

Wouldn't that depend upon the traceability of the gift? If
the gift came from separate property, would it be imputed as
a gift from an individual unless designated otherwise?

A gift to a married individual in a community property state
is considered individual property of the recipient (though
it usually rapidly loses this attribute due to comingling of
assets); hence the question on the giftor side (whether it
is really a gift from the community if it comes from
separate property).

http://www.nolo.com/article.cfm/obje...1/309/298/ART/

--
Mark Freeland
nNeEwTs[at]sonic.net

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"Nathan Gutman" <nzgutman[at]sbcglobal.net> wrote:

- quote -

Thank you all for helping and explaining.

--
Nathan Gutman

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Hi Nathan,

Q1. Does that mean that if only one of us writes three
checks for $15,000 we must file the 709 form?

Yes. Since the annual gift exclusion amount is $12,000 and
only one spouse is giving each child $15,000, that spouse
must file Form 709 and pay a gift tax since the gift amount
exceeded the exclusion amount.

However, if you and your wife agree to split each $15,000
gift given by only one spouse, then each of you would be
making a gift of $7,500. This means neither of you exceeded
the annual gift exclusion amount of $12,000 so you won't owe
a gift tax. However, you must both file Form 709.

Q2. But if I write three checks for $10,000 and my wife
writes three for $5,000 we will not have to file the 709
form?

Yes. Each spouse of a married couple can give a gift up to
$12,000 (for 2006) to any one person for a total of $24,000
without having to pay a gift tax or file Form 709

You didn't say how old your children are but if the are in
college, you could pay their tuition directly to the college
and this amount is not subject to the gift tax.

Refer to Publication 950 for more info.

Rudy
www.LizcanoTaxServicesLLC.com

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Nathan Gutman wrote:

- quote -

Any one person may give any other one person $12000 per year
(don't forget this includes all gifts, birthday, Christmas,
etc.) . This means that you may give each of your children
$12000 and your wife may give each of the children $12000.
If the children are married this can mean $48000 per year
without reporting anything.

Missy Doyle

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Nathan Gutman <nzgutman[at]sbcglobal.net> wrote:

- quote -

If you're in a community property state, it's automatically
considered a gift from you both, so you can go up to $24,000
each without having to file a gift tax return.

But if you are not in a community property state you are
exactly right: you have two options. One of you can give
$15,000 and file a return, or you can each give less than
$12,000 and not have to file a return.

Stu

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Nathan Gutman <nzgutman[at]sbcglobal.net> wrote:

- quote -

Correct.

- quote -

Gifts are from considered to be from one individual to one
individual.

You can gift $12000 to any one person per year without
filing a gift tax form.

Your wife can gift $12000 to any one person per year without
filing a gift tax form.

My father's tax advisor told him to write two separate
checks from their joint check account, with the memorandum
indicating who the gift is from.

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nzgutman[at]sbcglobal.net (Nathan=A0Gutman) posted:

- quote -

I'll try.

Both of you are entitled to give up to $12,000 _each_ to
_anyone_ without any reporting necessary. That means, each
of you could write a check for $7,500 -- or one could write
a check for $10,000 and the other for $5,000 -- to each of
your children ... and no report of any kind would be
necessary.

[That "gift exclusion" is true for any amount up to $12,000
given to anyone this year. If you exceed that limit, then a
report is necessary -- but nothing has to be paid. It's
simply an acknowledgement of the gift, and it is assessed
against your eventual estate -- lowering the total amount
which can be passed on by an amount equal to the "excessive
gift." If this were to become an issue, I would recommend
you seek expert advice -- as from a CPA or Enrolled Agent,
or from your attorney who prepared your wills/trusts.]

Bill

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"Nathan Gutman" <nzgutman[at]sbcglobal.net> wrote:

- quote -

No need for us to explain it. You explained things perfectly.

Ira Smilovitz

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"Nathan Gutman" <nzgutman[at]sbcglobal.net> wrote

- quote -

You can write one check, and to clear up the issue of it
being a joint gift, both of you sign the check, and be sure
to write "gift" on it.

--
Paul Thomas, CPA
paulthomascpapc[at]bellsouth.net

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My wife and I want to give this year (2006) to our three
children $15,000 each. The exclusion is $12,000. Does that
mean that if only one of us writes three checks for $15,000
we must file the 709 form but if I write three checks for
$10,000 and my wife writes three for $5,000 we will not have
to file the 709 form?

Can someone please explain in simple words?

Thanks.

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