Gift limits for husband and wife

Discussion in 'Tax' started by JHB, Mar 26, 2010.

  1. JHB

    JHB Guest

    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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    JHB, Mar 26, 2010
    #1
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  2. JHB <> 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.

    --
    Stu
    http://downtoearthlawyer.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. >>
    << ------------------------------------------------------- >>
     
    Stuart A. Bronstein, Mar 26, 2010
    #2
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  3. JHB

    JoeTaxpayer Guest

    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-tips/taxes-101-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

    --
    << ------------------------------------------------------- >>
    << 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. >>
    << ------------------------------------------------------- >>
     
    JoeTaxpayer, Mar 26, 2010
    #3
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