dpb <none[at]non.net> wrote:
- quote -

Actually loans can be gifts to the extent the borrower
doesn't pay reasonable interest. There were a series of
cases several years ago involving a wealthy relative lending
money without interest, with the proviso that repayment
could be demanded at any time, and those loans were
considered gifts of the interest or other income earned or
that could have been earned on the gifts.

Whether or not it's a gift has little or nothing to do with
what the borrower does or thinks - it's about what the giver
does and thinks. If it is given out of "disinterested
generosity," it's a gift.

Stu

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Arthur Kamlet wrote:
....
- quote -

OK, thanks...

I'm assuming that means no expectation of payback, etc., is
all it takes to qualify them as bona fide...

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dpb <none[at]non.net> wrote:
- quote -

Aassuming these are bona fide gifts, No.

--
ArtKamlet at a o l dot c o m Columbus OH K2PZH

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dpb <none[at]non.net> wrote:
- quote -

Yes.

See "Transfers Not Subject to the Gift Tax" on Page 2, here:

http://www.irs.gov/pub/irs-pdf/i709.pdf

--
ArtKamlet at a o l dot c o m Columbus OH K2PZH

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Arthur Kamlet wrote:
- quote -

A second followup question--

Would those payments be reportable as income by the person
on whose behalf the payments were made?

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Arthur Kamlet wrote:
- quote -

OK, thanks -- I had been looking for that and unable to find
it. Do you or someone else know where I can find the
applicable rules?

Would direct payment for health insurance qualify similarly?

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dpb <none[at]non.net> wrote:

- quote -

You can pay a medical provider for medical expenses and
those payments are not counted towards gift tax.

Similarly you can pay tuition expenses for higher education
directly to the school and no gift tax here either.

--
ArtKamlet at a o l dot c o m Columbus OH K2PZH

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dpb <n...[at]non.net> wrote:

- quote -

Direct payments to the school or medical facility, for the
benefit of others, are not subject to the gift tax limits.

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Looking at what options are available to aid
daughter/grandkids w/ medical and health insurance as well
as longer term for education, etc.

Am curious if there are any techniques that would allow for
direct payment of medical expenses, etc., as non-counting
towards gift tax limits.

Alternatives to mix/match w/ 529, HSA, directed trust, etc.,
are what am looking for some guidelines/considerations that
have beneficial effects from both tax liability of
donor/donee and estate reduction considerations are of
interest...

Thoughts appreciated...

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