Hoping Tax Guru's Can Help With Question On Gift Tax

[SyrNy1960]

This is a link I read, but I want to make sure I understand it correctly.

https://blog.taxact.com/gift-tax-cal...gift-tax-free/

My wife has a large amount of money that she wants to give to her son ($19,000+). She received the money from her father's Will in 2005. Been sitting in the bank since.

After reading this online, it seems she wouldn't have to pay taxes and the amount would be reported and contributed to her lifetime exclusion amount.

* The gift giver pays any gift tax owed, not the receiver.

* You don’t have to report gifts to the IRS unless the amount exceeds $18,000 in 2024 (increasing to $19,000 in 2025).

* Any gifts exceeding $18,000 in a year must be reported and contribute to your lifetime exclusion amount of $13.61 million.

* You can gift up to $13.61 million over your lifetime without paying a gift tax on it (as of 2024).

Am I reading this correctly?

Thanks! Tony

[Peter_Spaeth]

Only caveat is that the 13 million, I believe, is a federal number. There might be lower state tax exclusions although I may be thinking of state estate taxes, not gift taxes.

[SyrNy1960]

Originally Posted by Peter_Spaeth

Only caveat is that the 13 million, I believe, is a federal number. There might be lower state tax exclusions although I may be thinking of state estate taxes, not gift taxes.

Thanks Peter!

[btjossem]

Peter was spot on…
I'm replying because of a recent inquiry in 2024 regarding skipping a generation when it comes to estate taxes…
The actual skipping is reported on 709 but I believe it has to be done within 9 months of the passing of the parent/grandparent.
so I believe that possibility is out of the question for you.
but check into the form 709

Use Form 709 to report: Transfers subject to the federal gift and certain generation-skipping transfer (GST) taxes.Jan 30, 2025

good luck.

[SyrNy1960]

Originally Posted by btjossem

Peter was spot on…
I'm replying because of a recent inquiry in 2024 regarding skipping a generation when it comes to estate taxes…
The actual skipping is reported on 709 but I believe it has to be done within 9 months of the passing of the parent/grandparent.
so I believe that possibility is out of the question for you.
but check into the form 709

Use Form 709 to report: Transfers subject to the federal gift and certain generation-skipping transfer (GST) taxes.Jan 30, 2025

good luck.

Thanks Bruce!