|
Posted by swreid5 on June 18, 2008, 10:39 am
Please log in for more thread options
My father-in-law is selling property and wants to give me, my husband
and daughter around $90,000 to $120,000 towards paying off bills and
buying a new home. I know that there will be tax required for him and
us, but what is the best way to go when handling this?
--
<< ------------------------------------------------------- >>
<< 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 June 18, 2008, 11:02 am
Please log in for more thread options
swreid5@aol.com wrote:
> My father-in-law is selling property and wants to give me, my
> husband and daughter around $90,000 to $120,000 towards paying off
> bills and buying a new home. I know that there will be tax
> required for him and us, but what is the best way to go when
> handling this?
If your father-in-law is married, he can give the three of you a total
of $72,000 without incurring any gift tax. One approach would be for
him to give you that much this year, and the balance on or after
January 1.
In any case, a gift tax will be incurred, but it's likely that no gift
tax will actually be owed yet. There is a lifetime exemption of
$1,000,000, and no tax is actually required to be paid until taxable
gifts exceed that amount.
Taxable gifts do get added back to a person's estate for estate tax
purposes after he dies, less gift tax paid.
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. >>
<< ------------------------------------------------------- >>
|
|
Posted by dpb on June 18, 2008, 1:08 pm
Please log in for more thread options Stuart Bronstein wrote:
...
> If your father-in-law is married, he can give the three of you a total
> of $72,000 without incurring any gift tax. One approach would be for
> him to give you that much this year, and the balance on or after
> January 1.
Just for some additional clarification to OP...
That's also assuming the assets to be disposed of are in joint ownership
w/ his wife, of course, since the limit is $12K/year per person (both
donor and donee).
--
--
<< ------------------------------------------------------- >>
<< 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 June 18, 2008, 1:41 pm
Please log in for more thread options > Stuart Bronstein wrote:
> ...
>> If your father-in-law is married, he can give the three of you a
>> total of $72,000 without incurring any gift tax. One approach
>> would be for him to give you that much this year, and the balance
>> on or after January 1.
>
> Just for some additional clarification to OP...
>
> That's also assuming the assets to be disposed of are in joint
> ownership w/ his wife, of course, since the limit is $12K/year per
> person (both donor and donee).
No, that's absolutely incorrect. Even if all the property is owned by
one of the spouses, they can elect to treat it as if it came from each
equally. See IRC §2513.
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. >>
<< ------------------------------------------------------- >>
|
|
Posted by removeps-groups@yahoo.com on June 18, 2008, 2:32 pm
Please log in for more thread options
> No, that's absolutely incorrect. Even if all the property is owned by
> one of the spouses, they can elect to treat it as if it came from each
> equally. See IRC §2513.
But in this case, is a gift tax return required to authorize the gift
splitting, though no gift tax will be due?
--
<< ------------------------------------------------------- >>
<< 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 | | Large Monetary Gift - Gift Tax Question | May 22, 2007, 11:38 pm |
| Large Monetary Gift - Gift Tax Question | May 25, 2007, 1:41 pm |
| monetary gift | January 10, 2007, 9:57 pm |
| Gift Tax Question | March 8, 2007, 12:04 am |
| House as a gift question | May 25, 2007, 1:41 pm |
| Parent's Home Gift to Daughter Question | June 8, 2007, 1:22 pm |
| Stock cost basis and gift tax exclusion ($12k a year) question | January 19, 2007, 1:39 am |
| Question about 529 account and state / federal taxes and federal gift taxes | July 23, 2007, 1:16 am |
| Is this a gift? | December 4, 2006, 5:57 pm |
| The Twice Given Gift | September 16, 2007, 3:27 am |
|
|
Yahoo! 
Google 
Windows Live 
del.icio.us 
digg 
Netscape 
XML Sitemap