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Gift limits for husband and wife

 
 
JHB
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      03-26-2010, 01:22 PM
Hi:

Can someone answer the following question:

I understand there is a $13,000 limit on the amount that any
individual can give to another individual without gift tax being
involved, and that for a married couple giving the amount is doubled
to $26,000. Now, can my wife and I give $26,000 to my son and ANOTHER
$26,000 to his wife without the gift tax being invoked, or is there a
limit for the couple receiving the money of $26,000?

Thanks in advance for an answer.

regards

John Baker

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Stuart A. Bronstein
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      03-26-2010, 01:58 PM
JHB <(E-Mail Removed)> wrote:

> Can someone answer the following question:
>
> I understand there is a $13,000 limit on the amount that any
> individual can give to another individual without gift tax being
> involved, and that for a married couple giving the amount is
> doubled to $26,000. Now, can my wife and I give $26,000 to my
> son and ANOTHER $26,000 to his wife without the gift tax being
> invoked, or is there a limit for the couple receiving the money
> of $26,000?


Yes.

But beware of one thing. If you don't live in a community property
state, you will have to be careful to be sure that the husband and
wife each give their own money. If it is money from a joint fund but
not equally earned by both spouses, you will have to file a gift tax
return and elect gift-splitting to make it work.

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Stu
http://downtoearthlawyer.com

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<< The foregoing was not intended or written to be used, >>
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<< 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 >>
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JoeTaxpayer
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      03-26-2010, 02:03 PM
On 3/26/10 9:22 AM, JHB wrote:
> Hi:
>
> Can someone answer the following question:
>
> I understand there is a $13,000 limit on the amount that any
> individual can give to another individual without gift tax being
> involved, and that for a married couple giving the amount is doubled
> to $26,000. Now, can my wife and I give $26,000 to my son and ANOTHER
> $26,000 to his wife without the gift tax being invoked, or is there a
> limit for the couple receiving the money of $26,000?


John, I recently wrote an article at the TurboTax blog on this topic,
http://blog.turbotax.intuit.com/tax-...-the-gift-tax/

The bottom line is you have it right. 2 givers x 2 recipients = 4 times
the $13K. Depending on the intent of the gift there are other
considerations. For example, there are no limits when paying for higher
education. I can pay the tuition bill for anyone, no limit, so long as I
wright the check directly. Same deal will medical/hospital bills.

Joe
www.joetaxpayer.com

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<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
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<< 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 >>
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