The donor is supposed to pay tax on any gift more than $14k in a calendar year. How closely does the IRS track this, if at all? How do they know if I wrote a check for $50K or donated a piece of property to someone?

Also, whats to stop me from simply opening an account in my own name and granting the other person authority to draw from it at their discretion?

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Posted by Wee Ice Mon

Member since May 2014

1395 posts

Posted on 6/7/17 at 3:34 pm to Jim Rockford

I would also like to know about the gift tax. Does anyone know what is the tax rate on $14k?

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Posted by CHSBears

Baton Rouge

Member since Aug 2007

778 posts

Posted on 6/7/17 at 3:51 pm to Wee Ice Mon

It is not really a tax. The person giving the gift, if it goes over the annual amount allowable, has to reduce their exclusion amount by the amount over the limit.

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Posted by MSTiger33

Member since Oct 2007

20360 posts

Posted on 6/7/17 at 3:52 pm to Jim Rockford

Banks have to report deposits in excess of $10,000. Are you gifting to a child? Is the child married? Are you married? If you answered yes to all three then you can donate $48,000 annually without having to file a gift tax return

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Posted by MSTiger33

Member since Oct 2007

20360 posts

Posted on 6/7/17 at 3:53 pm to Wee Ice Mon

Max rate of 40% offset by your lifetime exemption

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Posted by crazycubes

Member since Jan 2016

5256 posts

Posted on 6/7/17 at 9:03 pm to Jim Rockford

It's all about risk. You can easily hide stuff here and there. If an audit shows up, you're fricked. If not, enjoy the ride.

As others have said. You can give a lot when you look at the numbers . A person with a Wife and 2 little kids could get $112,000 a year from their parents tax free (14 X 2 X 4)

This post was edited on 6/7/17 at 9:17 pm

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