Gift tax limit

Your relative is responsible for the gift tax.

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you mean someone’s parent or family member cannot give you more than $15k without paying a tax on it?

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Each parent can gift $15,000*/year to someone. So a couple can gift $30,000 a year to their child.

*Or, whatever the current annual gift exclusion amount is. I'm too lazy to look it up and verify the amount for 2021.

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That seems absurd.

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Write your congressman.

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But how will the IRS ever find out?

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Banks have to report any deposit over $10k.

And it's BS but if you split it into 2 or more parts to avoid the reporting threshold, it's structuring and that gets you PMITA prison.

I doubt it's in the form of currency and even then you have to worry about protecting it from criminals, including the ones with a badge who use forfeiture.

Relative would be responsible for gift tax unless they are unable to pay.

Relative has to file a gift tax return depending on amount if they didn't do a split gift.

Relative will only owe a gift tax if they've used up their lifetime exclusion of $11.5m. AKA only the OT Ballas pay gift tax.

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Sounds like a lot of 9999 deposits incoming

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Or just give the gift unless you planning on gifting 8 digits worth of stuff.

There is no tax unless they have already given you $11,500,000.

A lot of bad information in this thread.

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There is no tax unless they have already given you $11,500,000

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That’s gonna be a problem for me, Baw. Need to do this in multi year installments.

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What happens if they want to buy you a vehicle valued more than $15k?

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You can give your kid a car worth more than the gift tax exemption if you are obligated to provide support for them. Each situation is different as to how much can be spent. And, there is no clear age cutoff. You kind have to look at state law for that and given how states look at children today, there's no telling how long that can be. Of course if you give your 35 year old son a $1 million antique Ferrari, the IRS would look at that much differently.

The same principle is used if say you are providing care for an elderly parent. If you spend $100k a year to house your parent in a elderly home or facility, the IRS isn't going to come after you for not reporting that as a gift.

If that money has already been taxed in some manner, why do we allow the IRS to know what private people are doing with their money? Just crazy.

Did you mean to say your relative gave you half at the end of last year and half just now?

$15k+$15k?

Maybe you did not deposit it right away?

Or did you mean that they gave half to you and half to your wife?

maybe they gave $15k to both of your kids for Christmas, $15k to your wife for her birthday, and $15k to you?

Presumably you and your wife have accounts at more than one bank? For deposits? How would Chase know what you deposit at Capitol One?

Also, private schools don't care who's name is on the tuition check and are not going to report anything to anybody. Assuming 2 kids, that could be $100k to $200k right there.