denisepearso...[at]gmail.com wrote:

- quote -

There is no limit to how much a person can give to another
person. However, there are tax or filing implications at
certain threshholds.

You may give up to $12,000 per person per year, without any
gift tax or filing considerations. If the person is married,
double that. If you are married, and your wife agrees to the
gift, double that.

Gifts over $12,000 per person per year will require you to
file a gift tax return.

There is a lifetime exclusion (your lifetime) of $1,000,000
of gifts - over the $12,000 per person per year. Even though
you would be required to file a return for gifts over
$12,000, you would owe no tax until the lifetime exclusion
is exceeded.

The receiver of the gift does not owe tax, regardless of the amount.

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

denisepearso...[at]gmail.com wrote:

- quote -

If you like you can give hundreds of people gifts of up to
$12,000 (current limit, could change), each, without having
to file a gift tax return. Your lifetime giving has to do
with gifts you've given which exceed the allowable amount,
each year, to any or all of the individuals, individually..
If the limit exceeds gifts to any one individual, or any #
of people (individually) only amount of that gift which
exceeds the $12,000 (or allowable limit for a particular
year) would be subject to the gift tax rules. Here are some
qualifiers which you may find useful:

http://www.irs.gov/newsroom/article/...107815,00.html

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

denisepearso...[at]gmail.com wrote:

- quote -

Short answer: No. There is no limit. There may, however,
be tax consequences.

Rather than answer your detailed questions, I will just
explain the rules and leave the application of them to those
questions as an exercise for the reader.*

There is a general rule and then there are some important
exceptions.

The general rule is that you can give as much as you wish to
anyone. The amount you give above an annual per person
threshold, however, can trigger the need to file a "gift tax
return." You also have a lifetime combined gift/estate tax
credit amount. If you give more than the annual threshold,
you file a return and begin using up the gift/estate tax
credit amount. Once that lifetime credit is exhausted, you
(or your estate) will have to pay tax on any gifts or (after
death) bequests. IIRC the credit currently appliles to $2
million, but I can't quite remember if there is a different
value for gift and estate purposes. This is currently in a
fair amount of flux, since there are annual changes (and
2010 is a particularly odd year).

The annual per-person threshold changes occasionally, but
IIRC the current value is $12,000 per person per year. As
long as the total of all annual gifts is less than this,
there is no need to file a return and no tax consequences.

There is also an unlimited exclusion for gifts between (U.S.
Citizen) spouses.

So, to summarize:
You can give to as many different people as you wish.
You can give $12,000 per year per person without tax
consequences.
Any excess giving begins using up your lifetime
gift/estate tax credit
Once the credit is used up, you start paying tax on gifts
and bequests.

* Can you tell I work for a university?

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

denisepearson01[at]gmail.com writes:

- quote -

No.

But if you give enough, the amount shielded from
estate tax when you die is reduced, and if you really
give enough, *you* have to pay gift tax on what you give.

- quote -

Yes, sort of.

- quote -

No.

- quote -

No.

- quote -

Yes.

- quote -

Yes.

- quote -

No.

- quote -

No.

- quote -

Yes.

Whether or not a gift is taxable depeneds on whether or not
you go over the annual per-recipient threshold in a
particular year, but how much your estate tax exemption is
reduced (or how much gift tax you pay if you've zeroed your
estate tax exemption) depeneds on *your* lifetime total of
taxable gifts.

See Forms 706 and 709 and their instructions.

--
Rich Carreiro rlc-news[at]rlcarr.com

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

denisepearson01[at]gmail.com posted:
- quote -

I hope you'll understand, Denise, that I didn't continue
with your entire list of options, because the answer is very
clear and simple:

At the present time, you may give a gift up to $12,000 to
any individual _every year_ without incurring any gift tax
liability, and without any need to report such gift. For
the recipient, there is never any obligation to report gifts
-- and no tax is ever due.

Furthermore, if you're married, you and your spouse can
_each_ give $12,000 -- for a total of $24,000 to any
individual, each year. (If, for example, you wanted to give
a gift to your married child, you could actually combine to
give the couple a total of $48,000 -- $12,000 to each of
them, from the two of you -- without any tax or report due.)

Each year starts anew, so long as you do not exceed the
limit. (And if you do, there is some reporting required --
but the net effect is to reduce the estate tax limitations
for the particular beneficiary involved. If that were the
case, you should consult your attorney -- but no immediate
tax liability would be incurred.)

Bill

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

denisepearson01[at]gmail.com wrote:

- quote -

(snip every permutation offered)

In 2007 and 2008, you may gift $12K each year to any number
of recipients you wish. (It was 10K, then 11K, a few years
back, now $12K)

Any amount over $12K requires you to file a form 709, which
you can get from IRS.gov . You then may pay the gift tax or
take a credit against your lifetime unified gift amount, $1M
and avoid taxes. There may also be an issue of gifting too
much to recipient more than one generation beneath you, but
that does not impact the $12K gift, only larger ones.

There are some minor variations on this theme, for example,
if you open a 529 college savings account, you may gift 5
years' deposits in advance, so $60K. But then, no gifting
anything to that recipient for next 4 years.

Gifts to charities are tax deductible, if you itemize, gifts
to individuals are not.

If you are beyond the $12K, and used up that $1M above, you
may want to consider converting IRA money to a Roth IRA.
Inherited IRAs are subject to both estate tax, and then,
income tax upon withdrawal by the beneficiary. A Roth is not
taxed on withdrawal, so this strategy can be used to reduce
your estate if you are pushing the limit, and to leave a
better inheritance if that's your wish.

If this doesn't answer the question in full and then some,
likely, another response will. Given the complex tax laws,
this topic tends toward the straightforward.

JOE
www.blog.joetaxpayer.com

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

<denisepearson01[at]gmail.com> wrote
- quote -

Nope. TherE are no limits set by anyone on making or
receiving gifts of any amount.

That being said, if the annual gifts made to any one
individual exceed $12,000, then a gift tax return must be
filed by the person making the gift. No gift tax is due
however, until the person making the gift exceeds their
lifetime exclusion.

--
Paul A. Thomas, CPA
Athens, Georgia

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

I'm a U.S. citizen. Is there a IRS rule limiting how much I
can give (or gift?) to other U.S. citizens? Does it depend
on:

1.) The total I've given (or gifted) to a particular
individual this year?
2.) The total I've given (or gifted) to a particular
individual since I began giving a few years ago?
3.) The total I've given (or gifted) to anyone/everyone this
year?
4.) The total I've given (or gifted) to anyone/everyone
since I began giving a few years ago?

If my giving or gifting does trigger an IRS tax, is the tax
on:

1.) The total I've given (or gifted) to a particular
individual this year?
2.) The total I've given (or gifted) to a particular
individual since I began giving a few years ago?
3.) The total I've given (or gifted) to anyone/everyone this
year?
4.) The total I've given (or gifted) to anyone/everyone
since I began giving a few years ago?

Or is the tax on any "new" amounts given after a particular
threshold is met (e.g., $10,000) ?

If it is, is that threshold per person/per lifetime, or for
everyone per lifetime, or per person/per year, or for
everyone per year?

Or does the "lifetime" part have to do with my lifetime, as
opposed to the lifetime of my recipient(s)?

Thanks, in advance, for the clarification.

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >