joetaxpayer wrote:
- quote -

Yes the clients are already making maximum annual exclusion gifts. They
are looking for loopholes besides the education and health care payment
exclusions.

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Bill Brown wrote:
- quote -

exemption, and not the supporter.

To repeat: ""Items not included in
- quote -


ChEAr$,
Harlan

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Bill Brown wrote:
- quote -

Brian - You've told the clients they can gift $24,000 with no tax due
each year? I trust you're asking because they are at the annual limit? I
don't believe paying the taxes is considered support, it's an obligation
of the child, whether from earned income (should have had withholdings)
or from interest, dividends, or capital gains. Either way, the tax
should be paid from that money.
JOE

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On Jan 21, 9:28*pm, Harlan Lunsford <hnslunsf...[at]bellsouth.net> wrote:
- quote -

Why does that encourage you? The quoted passage makes it clear that
paying someone else's income tax liability is not support of that
other person.

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Brian wrote:
- quote -

I'm encouraged by what publication 17 says: "Items not included in
support: Federal, state, income taxes paid by persons from THEIR OWN income"

This would imply that those taxes might be construed as support if paid
by others. But that's not definite.

Of course line 18 of the excellent support worksheet is for "other".
I would include it, unless someone else chimes in with better information.

ChEAr$,
Harlan Lunsford, EA n LA

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I have clients who want to pay their child's income tax liability. I
believe that this would be a gift to the child.

Gift tax rules exclude legally required support from classification as
gifts. The clients think that they can pay their child's income tax and
claim it as support. Is there an IRS definition of support somewhere?

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<< ------------------------------------------------------- > << 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. > << ------------------------------------------------------- >