form 709 and gift splitting??

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libralibra
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form 709 and gift splitting??

Post by libralibra » Sat Jul 30, 2011 6:27 pm

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Last edited by libralibra on Sat May 25, 2019 12:24 am, edited 2 times in total.

Alan S.
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Post by Alan S. » Sat Jul 30, 2011 7:01 pm

The gift is deemed split between the spouses ONLY if it is considered to be community property, ie from an account funded by earnings while married in a CP state. Otherwise, the 709 must be filed to record gift splitting.

While the IRS does not have a simple information reporting control similar to a 1099, certain banking regulations as part of the Patriot Act and related controls require bank reporting on large transfers, but I do not know the limit. If so, then there would be a record of certain large gifts. Then there is always the IRS audit that would probably be triggered by something totally unrelated but the IRS would look into everything. The tax gap in this area is probably horrific however.

johnkgan
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Re: form 709 and gift splitting??

Post by johnkgan » Mon Jun 04, 2018 1:01 pm

So, if the amount is coming from community property (earnings of 1 spouse after marriage and even if it is not from joint account), as the couple live in Community Property state, is it still required to file 2 709 tax returns with half the gift in each return by each spouse?

Alan S.
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Re: form 709 and gift splitting??

Post by Alan S. » Mon Jun 04, 2018 10:20 pm

No, not unless the total gift exceeds 30k (based on 2018 exclusion of 15k for each spouse). The 709 Inst only specify that the gift must come from community property, the definition of which varies somewhat between the CP states. There is no guidance regarding the registration of the account on which the check is written. The actual derivation of the funds probably trumps the title on the account in most cases, but state law can also be a factor. Obviously, it is preferable to have such accounts titled as community property or CPWROS.

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LadyGeek
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Re: form 709 and gift splitting??

Post by LadyGeek » Wed Mar 25, 2020 8:09 pm

MathIsMyWayr has a question which I've moved into a new thread. See: MathIsMyWayr

This is a 2011 thread and the OP has removed content. There's no point to continue. This thread is locked to end the discussion.
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