How to give for Gif Tax? Tax Best Practices?

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FoolStreet
Posts: 1112
Joined: Fri Sep 07, 2012 12:18 am

How to give for Gif Tax? Tax Best Practices?

Post by FoolStreet »

I could use some advice on how best to give money considering gift taxes. Let's say my wife and I want to give the max up to gift tax limits to a family member, I am trying to figure out the best way to do it. I believe the max is $14k per person per year and we can each give 14k, up to 28k per year. My CPA recommended writing two checks, for 14k each, and signing one myself and the other by my wife to support the paper trail. That makes sense. But if we do a wire transfer, are there best practices? Maybe just do two wires and add a comment in one saying it's from me and the other saying it's from my spouse?
mhalley
Posts: 8668
Joined: Tue Nov 20, 2007 6:02 am

Re: How to give for Gif Tax? Tax Best Practices?

Post by mhalley »

I don't know how legally binding a comment on a transfer is. I think it would be safer to write the seperate checks. So twentieth century! :oops:
But I am not a lawyer and the last hotel I stayed in was Las Quintas, so what do I know?
There is no problem giving more, it just means you have to fill out the gift tax form and use up some of your estate tax exemption. Not planning on giving more than 5.5 million are you?
Last edited by mhalley on Sat Jul 22, 2017 12:19 pm, edited 1 time in total.
PFInterest
Posts: 2684
Joined: Sun Jan 08, 2017 12:25 pm

Re: How to give for Gif Tax? Tax Best Practices?

Post by PFInterest »

i dont think anyone is going to care or audit you. but sure, send 2 separate transfers if you want.
Avo
Posts: 1099
Joined: Wed Jun 11, 2008 2:21 am
Location: California

Re: How to give for Gif Tax? Tax Best Practices?

Post by Avo »

There's a gif tax??

Image
mhalley
Posts: 8668
Joined: Tue Nov 20, 2007 6:02 am

Re: How to give for Gif Tax? Tax Best Practices?

Post by mhalley »

Yep, 1 donut and 1 Duff per gif.
Last edited by mhalley on Sat Jul 22, 2017 12:21 pm, edited 1 time in total.
aristotelian
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Joined: Wed Jan 11, 2017 8:05 pm

Re: How to give for Gif Tax? Tax Best Practices?

Post by aristotelian »

Avo wrote:There's a gif tax??

Image
That just cost you 75 cents gif tax. You will be receiving a bill from the IRS.
PFInterest
Posts: 2684
Joined: Sun Jan 08, 2017 12:25 pm

Re: How to give for Gif Tax? Tax Best Practices?

Post by PFInterest »

Avo wrote:There's a gif tax??

Image
i just noticed that spelling too. :D :D :D
Topic Author
FoolStreet
Posts: 1112
Joined: Fri Sep 07, 2012 12:18 am

Re: How to give for Gif Tax? Tax Best Practices?

Post by FoolStreet »

Avo wrote:There's a gif tax??

Image
...mmmm.... I think you are pronouncing it wrong.....

Image


Heh heh. :-)
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