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

It gets down to a factual inquiry: who does the money
belongs to and who is making the gift? If the money is
legally owned half by each and both sign the gift card, I'd
think that only one signature on the check would be ok.

Stu

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Stuart A. Bronstein wrote:
- quote -

How about a $24,000 check written on a parental joint
account? Also, must both parents sign it even though only
one signature is required for the account?

Bill

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Craig Davis wrote:

- quote -

Currently, each person can give up to $12,000, each, to any
number of other people per year. No gift tax form or other
notification is required. Husband and wife should write
serperate checks for up to $12K each--not a joint check for
$24,K. Remember you gave them Christmas presents also. I
don't think normal clothing and toys would be considered
gifts to children. when you exceed these amount a gift tax
form 709 is required, but no tax is due until gifts use up
your entire estate and gift tax exemption, currrently $2 mil
per person.

ed

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Craig Davis wrote:

- quote -

For each parent, the annual gift exclusion is $11000 for
each child in the year 2002 through 2009. So each parent has
$33000 (both parents have $66000) for 3 children tax-free
gift amount. For the gift more than the annual exclusion
amoumt, Form 709 must be filed.

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"A.G. Kalman" <agkdisposable-mtm[at]yahoo.com> wrote:
- quote -

That's only true if, under state law, $12,000 exactly comes
from each parent. Otherwise they are required to file a
gift tax return and elect to split the gift on the return.

Stu

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Craig Davis wrote:

- quote -

Each taxpayer may gift anyone else a total of $12000 each
year. This includes Christmas, Birthdays etc. This means
that you and your spouse may gift each child $24000 each
year. If the child is married, you may gift up to $48000
each year without filing a gift tax return.

Missy Doyle

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Craig Davis wrote:

- quote -

Each person may gift $12,000 to each other person. So one
parent may gift (12K x 3) $36K total, each year, for a
$72K/year total gifted from the parents to the three kids.
This amount does not require reporting.

Gifts going through a 529 account may be gifted up to 5
years in advance. i.e. $60K person to person. So for the two
parent/ three kids combo, $360K may be gifted to the 529
accounts, if college savings was the intent.

Amounts higher than the numbers above require filing forms
and declaring a deduction against one's unified credit (the
amount you may pass to heirs through you estate). Good info
at
http://www.irs.gov/businesses/small/...=98968,00.html

JOE

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Craig Davis wrote:

- quote -

The parents can gift $24000 to each child annually without having
to file a Gift Tax Return. Please note that the $24000 is the sum
of all gifts, not just cash gifts. In other words, it includes
the birthday gifts, the anniversary gifts, the Xmas gifts, etc., etc.

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"Craig Davis" <cedavis2[at]earthlink.net> wrote:

- quote -

The question sounds so simple, but the answer is actually
not so simple.

There are a couple of different answers to your question.
When you say "incurring a gift tax" you mean currently
having to pay a gift tax, they can give up to $1,000,000
each. Everything in excess of the exempt amount discussed
below will be deducted from their lifetime exemption. So
that if any future gifts are made in excess of the exempt
amount, a gift tax will be owed at that time. And when they
die the amount will be deducted from their estate tax
lifetime exemption, increasing estate taxes at that time.

The exemption is that each person can give to any other
person an inflation-adjusted amount that this year is
$12,000. As a result a married couple can give $24,000 to
each person. With three kids that means up to a total of
$74,000 in any year. This amount is completely exempt from
gift tax, and does not reduce the lifetime exemption for
either for gift or estate tax.

As for whether a gift tax return is required, it depends on
whose property is being given under the laws of your state.
If you live in a community property state and the gift is of
community property, each spouse's gifts will be under the
$12,000 exempt amount, so no return is required.

But if you live in a non-community property state, or you
live in a community property state but the gift is not of
community property, the result may be different. If a gift
from an individual spouse exceeds $12,000 but the total for
both does not exceed $24,000, the gift is still exempt. But
a gift tax return is required, and the spouses have to elect
to "split" the gift on that return.

Stu

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"Craig Davis" <cedavis2[at]earthlink.net> wrote

- quote -

Each parent can give $12,000 to each child - each year I
might add - without any gift tax return required to be
filed.

Remember that this is the *total* amount of gifts in any
calendar year. So if they have made other gifts this year,
they may need to reduce the amount of any cash gift
accordingly.

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

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How much money can both parents give each of three children
without incurring a gift tax? Do tax-free gifts need to be
reported to the IRS? Thanks in advance for any help you can
give.

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