Gift Taxes

[Closet_Gamer]

Hi.

We find ourselves needing to help a relative in need with a gift in excess of the $36k tax free gift under IRS law. I believe the current law says that we can send money beyond that and deduct it from the current “lifetime” gift allowance of $13.6M. (LOL. That ain’t happening!)

Curious if anyone has experience with this and what complexity I may be missing in doing this?

For a variety of reasons we aren’t able to spread the gift over years, etc.

Thanks

 

[Koolau]

The reporting issues are minimal and are really no big deal. No taxes should be due on your part and I don't think there should be any taxes due from the person you gift to. Sorry I can't recall the form you need to send but, again, no big deal and few if any long term consequences. YMMV

 

[Car-Guy]

This has been discussed on this forum many times. You just need to file form 709 and you are done. The form looks intimidating, but it's really pretty simple. I've done it a couple of times.

 

[Closet_Gamer]

Thanks. Much appreciated.

 

[SecondCor521]

If the relative has a spouse you can do up to $72K:

you to relative
you to relative's spouse
your spouse to relative
your spouse to relative's spouse

Simplest way to document it to avoid the 709 is to write four checks, two signed by you and two signed by your spouse.

 

[Closet_Gamer]

If the relative has a spouse you can do up to $72K:

you to relative
you to relative's spouse
your spouse to relative
your spouse to relative's spouse

Simplest way to document it to avoid the 709 is to write four checks, two signed by you and two signed by your spouse.

Thanks. Sadly, it is getting rid of said spouse that is precipitating this.

 

[SecondCor521]

Thanks. Sadly, it is getting rid of said spouse that is precipitating this.

Oh. Sorry to hear, that's tough.

 

[Sunset]

That's a lot of $$$ to get rid of a spouse...

 

[Closet_Gamer]

Sorry, to be clear, it’s not my spouse. It’s helping a relative thru the difficulties of resolving getting rid of her spouse.