Gift tax returns on spouse gifts?

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Subject Author Date Gift tax returns on spouse gifts? Taxlover 03-13-2008  Re: Gift tax returns on spouse gifts? Stuart Bronstein 03-14-2008
Posted by Taxlover on March 13, 2008, 11:23 pm Please log in for more thread options I will spare you the details on why I want to do this, but I want to give my wife a brokerage account in my name and take one from her. (has to do with estate taxes and portfolio diversification...) My accountant says I have to file gift tax returns for these, eventhough they are not taxable, to document how we came to have them. This seems silly to me, but that doesn't mean it isn't necessary. Whatcha think? Obviously we could just liquidate them and reinvest to simulate a trade, but I expect the transaction fees will cost more than the tax returns. -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by Stuart Bronstein on March 14, 2008, 1:34 am Please log in for more thread options > I will spare you the details on why I want to do this, but I want > to give my wife a brokerage account in my name and take one from > her. (has to do with estate taxes and portfolio > diversification...) I'm interested in the details. Without them it sounds like a pretty screwy way to do estate planning and portfolio diversification. > My accountant says I have to file gift tax returns for these, > eventhough they are not taxable, to document how we came to have > them. > > This seems silly to me, but that doesn't mean it isn't necessary. > Whatcha think? Again, it depends on the background facts. Technically a gift tax return is not necessary. But if you are doing something that's not quite legitimate and you want the statute of limitations to start running on the IRS's ability to audit you later, filing gift tax returns might be helpful. > Obviously we could just liquidate them and reinvest to simulate a > trade, but I expect the transaction fees will cost more than the > tax returns. Whether it's a trade (in which you might incur income tax) or a gift, liquidating and reinvesting is probably unnecessary to the legal issue you are addressing, so you should decide on whether to do that separately. Stu -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Similar Threads Posted Client working and living abroad files federal returns; no major assets left in the USA, will he have to file state returns? October 10, 2008, 2:30 pm tax question about gifts January 25, 2008, 5:43 pm Accounting gifts December 26, 2008, 12:57 pm Gifts as advance on inheritance February 2, 2007, 1:32 am Prizes and Business Gifts February 13, 2007, 2:08 am taxes on multiple gifts June 19, 2007, 9:31 pm Gifts to charity values January 25, 2008, 10:19 pm The perfect christmas gifts October 13, 2008, 11:48 am Charitable Gifts directly from an IRA September 27, 2009, 12:45 pm Gifts of Present Value/Crummey Letters November 4, 2006, 10:35 pm