Home Page link  

Is this a gift?

  
Groups | Search | About
User Password
Register Now! Lost Password?

Taxes General Forum - Tax professionals meeting place and answers to queries. (Moderated)

 Post an article  get this group's latest topics as an RSS feed add this group's latest topics to your My MSN content add this group's latest topics to your My Yahoo content  add this group's latest topics to your Google content  YahooMyWeb Yahoo!  Google Google  Windows Live Favorites Windows Live  del.icio.us del.icio.us  digg digg  Add to Netscape Netscape
Subject Author Date
Is this a gift? NadCixelsyd 12-04-2006
|--> Re: Is this a gift? Stuart A. Brons...12-05-2006
|--> Re: Is this a gift? cballard@tyyni....12-05-2006
Posted by NadCixelsyd on December 4, 2006, 5:57 pm
Please log in for more thread options
 My 26 year old single child has been independent since
graduating from college in 2002. Now, said child has been
accepted to full-time medical school. Mom and Dad want to
pay most of the tuition which is $53000 per year. Child
will be responsible for other expenses by consuming $30000
savings and then taking out loans.

Is there a way to pay this tuition without using my unified
credit? Can I loan child money without interest? I know
they're going to be making more than I in four years, but by
then, I'll be 67 and probably won't need the $$$.

<< ======================================================= >>
<< 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 (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by Stuart A. Bronstein on December 5, 2006, 9:09 pm
Please log in for more thread options
> My 26 year old single child has been independent since
> graduating from college in 2002. Now, said child has been
> accepted to full-time medical school. Mom and Dad want to
> pay most of the tuition which is $53000 per year. Child
> will be responsible for other expenses by consuming $30000
> savings and then taking out loans.
>
> Is there a way to pay this tuition without using my unified
> credit? Can I loan child money without interest? I know
> they're going to be making more than I in four years, but by
> then, I'll be 67 and probably won't need the $$$.

If you pay the tuition (should be directly to the school)
then the payment is not considered a taxable gift under IRC
§2503(e).

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 (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by Phil Marti on December 5, 2006, 9:09 pm
Please log in for more thread options

> My 26 year old single child has been independent since
> graduating from college in 2002. Now, said child has been
> accepted to full-time medical school. Mom and Dad want to
> pay most of the tuition which is $53000 per year. Child
> will be responsible for other expenses by consuming $30000
> savings and then taking out loans.
>
> Is there a way to pay this tuition without using my unified
> credit?

Yes. Pay the tuition directly to the school and it doesn't
count against your annual tax-free gift limit. (The same
applies for medical expenses.)

--
Phil Marti
Clarksburg, MD

<< ======================================================= >>
<< 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 (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by A.G. Kalman on December 5, 2006, 9:09 pm
Please log in for more thread options
NadCixelsyd wrote:

> My 26 year old single child has been independent since
> graduating from college in 2002. Now, said child has been
> accepted to full-time medical school. Mom and Dad want to
> pay most of the tuition which is $53000 per year. Child
> will be responsible for other expenses by consuming $30000
> savings and then taking out loans.
>
> Is there a way to pay this tuition without using my unified
> credit? Can I loan child money without interest? I know
> they're going to be making more than I in four years, but by
> then, I'll be 67 and probably won't need the $$$.

If you pay the tuition (tuition only) DIRECTLY to the med
school, it is not a gift and no gift tax return need be
filed.

<< ======================================================= >>
<< 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 (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by Herb Smith on December 5, 2006, 9:09 pm
Please log in for more thread options
NadCixelsyd wrote:

> My 26 year old single child has been independent since
> graduating from college in 2002. Now, said child has been
> accepted to full-time medical school. Mom and Dad want to
> pay most of the tuition which is $53000 per year. Child
> will be responsible for other expenses by consuming $30000
> savings and then taking out loans.
>
> Is there a way to pay this tuition without using my unified
> credit? Can I loan child money without interest? I know
> they're going to be making more than I in four years, but by
> then, I'll be 67 and probably won't need the $$$.

Gifts for higher education, if given directly to the
educational institution, are EXEMPT from the annual gift tax
limits.

<< ======================================================= >>
<< 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 (2006) - All rights reserved. >>
<< ======================================================= >>

Similar ThreadsPosted
Large Monetary Gift - Gift Tax Question May 22, 2007, 11:38 pm
Large Monetary Gift - Gift Tax Question May 25, 2007, 1:41 pm
The Twice Given Gift September 16, 2007, 3:27 am
What is a gift? August 26, 2008, 4:57 pm
monetary gift January 10, 2007, 9:57 pm
Gift Rules January 18, 2007, 3:23 am
Gift Tax Question March 8, 2007, 12:04 am
Was this house a gift? April 5, 2007, 2:27 am
Gift Tax Evasion? August 18, 2007, 2:07 am
tax implications of gift October 26, 2007, 11:52 pm

Contact Us | Privacy Policy
This site is not affiliated with Intuit - makers of Quickbooks and Quicken software
This site is not affiliated with Sage Software - makers of Peachtree accounting software
XML SitemapXML Sitemap