I could not find via search any discussion of how to gift cash to a relative without a tax bite. I understand that 20k is max.
My DM needs some assistance to pay living expenses and I'm here to help...but her only account to send to is a joint account that I'm on. I handle all her finances.
Is there a way I can gift her the cash, pay no tax and be able to earmark it for her use to pay rent, etc. I could also open another account for her exclusively, if needed. Her bills are paid automatically.
I'm guessing that there is no tax benefit to me on my taxes.. we both are simply avoiding tax via the gifting.
Right or wrong? Any advice as to when to gift, how to show it..etc... thanks!
My DM needs some assistance to pay living expenses and I'm here to help...but her only account to send to is a joint account that I'm on. I handle all her finances.
Is there a way I can gift her the cash, pay no tax and be able to earmark it for her use to pay rent, etc. I could also open another account for her exclusively, if needed. Her bills are paid automatically.
I'm guessing that there is no tax benefit to me on my taxes.. we both are simply avoiding tax via the gifting.
Right or wrong? Any advice as to when to gift, how to show it..etc... thanks!