EDIT: Comments below are OBE. Apparently, you can essentially distribute your estate while you are still alive. See IRS form 709 and its instructions.
Definitely want to talk with a tax attorney about this.
Typically, the recipient of a gift does not pay tax. However, that doesn't mean tax is not owed. If the gift value is higher than the annual exclusion then tax will be owed and it is typically the donor who is required to pay.
Whether the $300,000 is given and the child pays the $65,000 or if the $65,000 is deducted first, the child will end up with $235,000 and the IRS with $65,000. At least that's the way I read the IRS information on gift taxes. On the other hand, I am not a tax attorney.
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Why do people insist on making claims without looking them up first, do they really think no one will check? Proof by emphatic assertion rarely works.
Confirmation bias is real; I can find any number of articles that say so.
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Yakima, WA
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Last edited by Bill14564; 04-07-2024 at 11:38 AM.
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