removeps-groups[at]yahoo.com wrote:
- quote -

from the http://www.savingforcollege.com site;

"How is my contribution to an ESA treated for gift tax purposes?

Your contribution is treated as a gift from you to the beneficiary. It
qualifies for the annual $12,000 gift tax exclusion. Be sure to keep
this in mind if you also contribute to a 529 plan for the same child.
You will need to add these contributions together in determining your
gift tax filings."

And from Fairmark;
"A contribution to a Coverdell account is treated as a completed gift of
a present interest. That's taxspeak for the kind of gift that qualifies
for the annual gift tax exclusion."

These were the first two google hits for [coverdell gift tax]. Why would
you think this would slip through, and not count as a gift?
Joe
www.blog.joetaxpayer.com

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On Jun 9, 8:00*pm, John Kohl <j...[at]bostonpog.org> wrote:

- quote -

If I'm not mistaken, the Coverdell contribution is not a gift and thus
does not come out of any year gift tax exclusion.

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

Say I want to make the maximum Coverdell contribution, but I am in the
phase-out region of AGI. That means I need to wait until my 1040 is
(nearly) final, and contribute in calendar year N+1 for crediting as a
tax year N contribution.

I make the actual contribution in year N+1. Does the contribution
come out of the gift tax annual limits for year N+1? Or year N?
Seems a bit odd (but no more odd than other stuff in the tax code!)...

--
==John Kohl <jtk[at]bostonpog.org> , <john_kohl[at]alum.mit.eduHome page: <http://mysite.verizon.net/jtkohl/index.htm
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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. > << ------------------------------------------------------- >