Gift dispersal

USA Discussion in 'Individuals' started by Carrie Trant, Aug 12, 2017.

  1. Carrie Trant

    Carrie Trant

    Joined:
    Aug 12, 2017
    Messages:
    1
    Likes Received:
    0
    My mother would like to gift $10k every quarter for four years. That's $40k/yr or $160k total after four years. Is there any detriment to dolling out the gift in this manner? I understand how the gift tax works. Just seems like a lot of withdrawls and deposits that might be more beneficial if deliniated in a better way. Thanks for any help.
     
    Carrie Trant, Aug 12, 2017
    #1
    1. Advertisements

  2. Carrie Trant

    Drmdcpa VIP Member

    Joined:
    Aug 2, 2017
    Messages:
    266
    Likes Received:
    19
    The current annual gift tax exclusion is $14k. This means she can give up to $14k to any person in any year and not have gift tax issues.

    If the $40k she gives goes to different people so as to not violate the annual exclusion then she can do what she wants.

    If she violates the annual exclusion she would be required to file a gift tax return. In such cases, I would recommend restructuring the gifts to avoid violating the annual exclusion.
     
    Drmdcpa, Aug 12, 2017
    #2
    1. Advertisements

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments (here). After that, you can post your question and our members will help you out.