I think the current limit is 14,000 per person, so if you wanted to stretch it you could give 14k then your wife could give 14k to the same person and still be under the annual limit

However the gifting exclusion only prevents them from having to pay income tax, it does not allow you to deduct that amount from your tax liability, unless of course they are considered a charitable organization, or so is my understanding

Yes a material object follows same guidelines

This is for IRS only, not sure about state specific

This post was edited on 6/10/16 at 6:49 pm

2 ...

Report Post

Posted by Beerinthepocket

Dallas

Member since May 2011

856 posts

Posted on 6/10/16 at 6:57 pm to Tigerpaw123

The recipient of a gift never pays income tax on it, the exclusion prevents the gifter from having to pay gift tax.

The gifter does not get a tax deduction for giving a gift.

0 ...

Report Post

Posted by Tigerpaw123

Louisiana

Member since Mar 2007

17279 posts

Posted on 6/10/16 at 7:27 pm to Tigerpaw123

quote:
However the gifting exclusion only prevents them from having to pay income tax, it does not allow you to deduct that amount from your tax liability, unless of course they are considered a charitable organization, or so is my understanding

I was partly wrong, the 14K exclusion has nothing to do with the recipient paying income tax, the IRS states that a received gift is not taxable, however the 14k prevents the DONOR from having to pay a gift tax, which is total BS, the donor already paid tax when they made the money the first time.

But nevertheless the donor never gets a deduction for gifting, save to a charitable organization

This whole exercise is just an example of how screwed up our tax code is and how it continues to bleed from the ones who do to provide for those that don't

0 ...

Report Post

Money Talk - Replies to Post

Return To Board

Page 1

Return To Board