Avoiding estate tax by giving multiple giftsWhat are the US gift tax rules for gifts from non-US persons?US Income Tax and GiftsWhen does giving a gift “count” for tax year?Gifts under the annual gift tax exemption FROM minor children?Gift tax with family member gifting real estateAvoiding tax complexities of REITsGiving kids annual tax free gift of $28,000Do political campaign contributions count as gifts for tax purposes?Can yearly tax free gifts to a person in the U.S. be sent in multiple checks?Gift tax on gifts from multiple, unrelated individuals
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Avoiding estate tax by giving multiple gifts
What are the US gift tax rules for gifts from non-US persons?US Income Tax and GiftsWhen does giving a gift “count” for tax year?Gifts under the annual gift tax exemption FROM minor children?Gift tax with family member gifting real estateAvoiding tax complexities of REITsGiving kids annual tax free gift of $28,000Do political campaign contributions count as gifts for tax purposes?Can yearly tax free gifts to a person in the U.S. be sent in multiple checks?Gift tax on gifts from multiple, unrelated individuals
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From my understanding in the US, a father can give an individual gift of $15,000 to a child (or anyone) without any tax liabilities and without impacting the lifetime allowance. If the father wants to give more money, can he make a gift to a third party he trusts (e.g., his brother/uncle of his son) who then makes a gift to the child, or is that tax fraud?
united-states gift-tax estate-planning
asked Mar 27 at 19:36
StrongBadStrongBad
725517
add a comment |
From my understanding in the US, a father can give an individual gift of $15,000 to a child (or anyone) without any tax liabilities and without impacting the lifetime allowance. If the father wants to give more money, can he make a gift to a third party he trusts (e.g., his brother/uncle of his son) who then makes a gift to the child, or is that tax fraud?
united-states gift-tax estate-planning
asked Mar 27 at 19:36
StrongBadStrongBad
725517
add a comment |
From my understanding in the US, a father can give an individual gift of $15,000 to a child (or anyone) without any tax liabilities and without impacting the lifetime allowance. If the father wants to give more money, can he make a gift to a third party he trusts (e.g., his brother/uncle of his son) who then makes a gift to the child, or is that tax fraud?
united-states gift-tax estate-planning
asked Mar 27 at 19:36
StrongBadStrongBad
725517
From my understanding in the US, a father can give an individual gift of $15,000 to a child (or anyone) without any tax liabilities and without impacting the lifetime allowance. If the father wants to give more money, can he make a gift to a third party he trusts (e.g., his brother/uncle of his son) who then makes a gift to the child, or is that tax fraud?
united-states gift-tax estate-planning
united-states gift-tax estate-planning
asked Mar 27 at 19:36
StrongBadStrongBad
725517
asked Mar 27 at 19:36
StrongBadStrongBad
725517
asked Mar 27 at 19:36
StrongBadStrongBad
725517
asked Mar 27 at 19:36
StrongBadStrongBad
725517
asked Mar 27 at 19:36
StrongBadStrongBad
725517
725517
add a comment |
add a comment |
1 Answer
1
active
oldest
votes
If you give a gift with stings attached, then it isn't a gift. Thus it would be viewed as trying to get around the tax law. The law regarding this is the Step Transaction Doctrine.
But a spouse can also give a gift, and you can give a gift to your child's spouse. Thus a couple can give another couple 4x the limit each year.
If the child is in school then the giver can pay tuition directly and not worry about the limit. They can't send it to the student, they have to send it to the school.
Of course exceeding the limit in a year, does require paperwork, but the lifetime allowance is $11.4M as of 2019. Current tax law has this number adjust for inflation. If this is is something to worry about, consult a tax attorney to see how to do this legally.
edited Mar 27 at 20:32
JoeTaxpayer♦
147k23236475
answered Mar 27 at 19:50
mhoran_psprepmhoran_psprep
69.7k897175
5
Nice. The first sentence is key to so many gift questions...
– TTT
Mar 27 at 20:03
1
There were a couple things I'd have posted, but 2 minor points don't make a full answer. If my edits are unwelcome, you can roll back. I won't take offense.
– JoeTaxpayer♦
Mar 27 at 20:33
1
@JoeTaxpayer the step transaction stuff is perfect.
– StrongBad
Mar 27 at 20:58
2
The first sentence isn't categorically true; in particular, it's routine for charitable gifts to come with instructions on how they must be used (particular scholarships, particular sorts of needy recipients, etc.).
– chrylis
Mar 28 at 0:23
5
@chrylis - On English.SE, I'd agree. Here, the distinction is that you are not talking about a gift, but a Donation. (And the IRS tends to prefer the phrase 'charitable contribution'). For the answer here, it's a given that this is a gift to an individual.
– JoeTaxpayer♦
Mar 28 at 9:39
add a comment |
protected by JoeTaxpayer♦ Mar 27 at 21:07
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Because it has attracted low-quality or spam answers that had to be removed, posting an answer now requires 10 reputation on this site (the association bonus does not count).
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1 Answer
1
active
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1 Answer
1
active
oldest
votes
active
oldest
votes
active
oldest
votes
If you give a gift with stings attached, then it isn't a gift. Thus it would be viewed as trying to get around the tax law. The law regarding this is the Step Transaction Doctrine.
But a spouse can also give a gift, and you can give a gift to your child's spouse. Thus a couple can give another couple 4x the limit each year.
If the child is in school then the giver can pay tuition directly and not worry about the limit. They can't send it to the student, they have to send it to the school.
Of course exceeding the limit in a year, does require paperwork, but the lifetime allowance is $11.4M as of 2019. Current tax law has this number adjust for inflation. If this is is something to worry about, consult a tax attorney to see how to do this legally.
edited Mar 27 at 20:32
JoeTaxpayer♦
147k23236475
answered Mar 27 at 19:50
mhoran_psprepmhoran_psprep
69.7k897175
5
Nice. The first sentence is key to so many gift questions...
– TTT
Mar 27 at 20:03
1
There were a couple things I'd have posted, but 2 minor points don't make a full answer. If my edits are unwelcome, you can roll back. I won't take offense.
– JoeTaxpayer♦
Mar 27 at 20:33
1
@JoeTaxpayer the step transaction stuff is perfect.
– StrongBad
Mar 27 at 20:58
2
The first sentence isn't categorically true; in particular, it's routine for charitable gifts to come with instructions on how they must be used (particular scholarships, particular sorts of needy recipients, etc.).
– chrylis
Mar 28 at 0:23
5
@chrylis - On English.SE, I'd agree. Here, the distinction is that you are not talking about a gift, but a Donation. (And the IRS tends to prefer the phrase 'charitable contribution'). For the answer here, it's a given that this is a gift to an individual.
– JoeTaxpayer♦
Mar 28 at 9:39
add a comment |
If you give a gift with stings attached, then it isn't a gift. Thus it would be viewed as trying to get around the tax law. The law regarding this is the Step Transaction Doctrine.
But a spouse can also give a gift, and you can give a gift to your child's spouse. Thus a couple can give another couple 4x the limit each year.
If the child is in school then the giver can pay tuition directly and not worry about the limit. They can't send it to the student, they have to send it to the school.
Of course exceeding the limit in a year, does require paperwork, but the lifetime allowance is $11.4M as of 2019. Current tax law has this number adjust for inflation. If this is is something to worry about, consult a tax attorney to see how to do this legally.
edited Mar 27 at 20:32
JoeTaxpayer♦
147k23236475
answered Mar 27 at 19:50
mhoran_psprepmhoran_psprep
69.7k897175
5
Nice. The first sentence is key to so many gift questions...
– TTT
Mar 27 at 20:03
1
There were a couple things I'd have posted, but 2 minor points don't make a full answer. If my edits are unwelcome, you can roll back. I won't take offense.
– JoeTaxpayer♦
Mar 27 at 20:33
1
@JoeTaxpayer the step transaction stuff is perfect.
– StrongBad
Mar 27 at 20:58
2
The first sentence isn't categorically true; in particular, it's routine for charitable gifts to come with instructions on how they must be used (particular scholarships, particular sorts of needy recipients, etc.).
– chrylis
Mar 28 at 0:23
5
@chrylis - On English.SE, I'd agree. Here, the distinction is that you are not talking about a gift, but a Donation. (And the IRS tends to prefer the phrase 'charitable contribution'). For the answer here, it's a given that this is a gift to an individual.
– JoeTaxpayer♦
Mar 28 at 9:39
add a comment |
If you give a gift with stings attached, then it isn't a gift. Thus it would be viewed as trying to get around the tax law. The law regarding this is the Step Transaction Doctrine.
But a spouse can also give a gift, and you can give a gift to your child's spouse. Thus a couple can give another couple 4x the limit each year.
If the child is in school then the giver can pay tuition directly and not worry about the limit. They can't send it to the student, they have to send it to the school.
Of course exceeding the limit in a year, does require paperwork, but the lifetime allowance is $11.4M as of 2019. Current tax law has this number adjust for inflation. If this is is something to worry about, consult a tax attorney to see how to do this legally.
edited Mar 27 at 20:32
JoeTaxpayer♦
147k23236475
answered Mar 27 at 19:50
mhoran_psprepmhoran_psprep
69.7k897175
If you give a gift with stings attached, then it isn't a gift. Thus it would be viewed as trying to get around the tax law. The law regarding this is the Step Transaction Doctrine.
But a spouse can also give a gift, and you can give a gift to your child's spouse. Thus a couple can give another couple 4x the limit each year.
If the child is in school then the giver can pay tuition directly and not worry about the limit. They can't send it to the student, they have to send it to the school.
Of course exceeding the limit in a year, does require paperwork, but the lifetime allowance is $11.4M as of 2019. Current tax law has this number adjust for inflation. If this is is something to worry about, consult a tax attorney to see how to do this legally.
edited Mar 27 at 20:32
JoeTaxpayer♦
147k23236475
answered Mar 27 at 19:50
mhoran_psprepmhoran_psprep
69.7k897175
edited Mar 27 at 20:32
JoeTaxpayer♦
147k23236475
edited Mar 27 at 20:32
JoeTaxpayer♦
147k23236475
edited Mar 27 at 20:32
JoeTaxpayer♦
147k23236475
147k23236475
answered Mar 27 at 19:50
mhoran_psprepmhoran_psprep
69.7k897175
answered Mar 27 at 19:50
mhoran_psprepmhoran_psprep
69.7k897175
answered Mar 27 at 19:50
mhoran_psprepmhoran_psprep
69.7k897175
69.7k897175
5
Nice. The first sentence is key to so many gift questions...
– TTT
Mar 27 at 20:03
1
There were a couple things I'd have posted, but 2 minor points don't make a full answer. If my edits are unwelcome, you can roll back. I won't take offense.
– JoeTaxpayer♦
Mar 27 at 20:33
1
@JoeTaxpayer the step transaction stuff is perfect.
– StrongBad
Mar 27 at 20:58
2
The first sentence isn't categorically true; in particular, it's routine for charitable gifts to come with instructions on how they must be used (particular scholarships, particular sorts of needy recipients, etc.).
– chrylis
Mar 28 at 0:23
5
@chrylis - On English.SE, I'd agree. Here, the distinction is that you are not talking about a gift, but a Donation. (And the IRS tends to prefer the phrase 'charitable contribution'). For the answer here, it's a given that this is a gift to an individual.
– JoeTaxpayer♦
Mar 28 at 9:39
add a comment |
5
Nice. The first sentence is key to so many gift questions...
– TTT
Mar 27 at 20:03
1
There were a couple things I'd have posted, but 2 minor points don't make a full answer. If my edits are unwelcome, you can roll back. I won't take offense.
– JoeTaxpayer♦
Mar 27 at 20:33
1
@JoeTaxpayer the step transaction stuff is perfect.
– StrongBad
Mar 27 at 20:58
2
The first sentence isn't categorically true; in particular, it's routine for charitable gifts to come with instructions on how they must be used (particular scholarships, particular sorts of needy recipients, etc.).
– chrylis
Mar 28 at 0:23
5
@chrylis - On English.SE, I'd agree. Here, the distinction is that you are not talking about a gift, but a Donation. (And the IRS tends to prefer the phrase 'charitable contribution'). For the answer here, it's a given that this is a gift to an individual.
– JoeTaxpayer♦
Mar 28 at 9:39
5
5
Nice. The first sentence is key to so many gift questions...
– TTT
Mar 27 at 20:03
Nice. The first sentence is key to so many gift questions...
– TTT
Mar 27 at 20:03
1
1
There were a couple things I'd have posted, but 2 minor points don't make a full answer. If my edits are unwelcome, you can roll back. I won't take offense.
– JoeTaxpayer♦
Mar 27 at 20:33
There were a couple things I'd have posted, but 2 minor points don't make a full answer. If my edits are unwelcome, you can roll back. I won't take offense.
– JoeTaxpayer♦
Mar 27 at 20:33
1
1
@JoeTaxpayer the step transaction stuff is perfect.
– StrongBad
Mar 27 at 20:58
@JoeTaxpayer the step transaction stuff is perfect.
– StrongBad
Mar 27 at 20:58
2
2
The first sentence isn't categorically true; in particular, it's routine for charitable gifts to come with instructions on how they must be used (particular scholarships, particular sorts of needy recipients, etc.).
– chrylis
Mar 28 at 0:23
The first sentence isn't categorically true; in particular, it's routine for charitable gifts to come with instructions on how they must be used (particular scholarships, particular sorts of needy recipients, etc.).
– chrylis
Mar 28 at 0:23
5
5
@chrylis - On English.SE, I'd agree. Here, the distinction is that you are not talking about a gift, but a Donation. (And the IRS tends to prefer the phrase 'charitable contribution'). For the answer here, it's a given that this is a gift to an individual.
– JoeTaxpayer♦
Mar 28 at 9:39
@chrylis - On English.SE, I'd agree. Here, the distinction is that you are not talking about a gift, but a Donation. (And the IRS tends to prefer the phrase 'charitable contribution'). For the answer here, it's a given that this is a gift to an individual.
– JoeTaxpayer♦
Mar 28 at 9:39
add a comment |
protected by JoeTaxpayer♦ Mar 27 at 21:07
Thank you for your interest in this question.
Because it has attracted low-quality or spam answers that had to be removed, posting an answer now requires 10 reputation on this site (the association bonus does not count).
Would you like to answer one of these unanswered questions instead?
