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Posted by joetaxpayer on June 10, 2008, 7:09 pm
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removeps-groups@yahoo.com wrote:
>
>
>>I make the actual contribution in year N+1. Does the contribution
>>come out of the gift tax annual limits for year N+1? Or year N?
>>Seems a bit odd (but no more odd than other stuff in the tax code!)...
>
>
> If I'm not mistaken, the Coverdell contribution is not a gift and thus
> does not come out of any year gift tax exclusion.
from the http://www.savingforcollege.com site;
"How is my contribution to an ESA treated for gift tax purposes?
Your contribution is treated as a gift from you to the beneficiary. It
qualifies for the annual $12,000 gift tax exclusion. Be sure to keep
this in mind if you also contribute to a 529 plan for the same child.
You will need to add these contributions together in determining your
gift tax filings."
And from Fairmark;
"A contribution to a Coverdell account is treated as a completed gift of
a present interest. That's taxspeak for the kind of gift that qualifies
for the annual gift tax exclusion."
These were the first two google hits for [coverdell gift tax]. Why would
you think this would slip through, and not count as a gift?
Joe
www.blog.joetaxpayer.com
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