A gift tax return is required when the $18,000 is exceeded. It's not optional as indicated.
Gifts carry with them the donor's basis; inheritances carry the fair market value at date of death ( or six month later if elected).
Give cash away; not stocks, bonds, houses, land..... So maybe it's not a good idea to give away the entire estate before death.
I've had residences inherited that when sold threw off a tax loss.
A couple could give $72,00 a year to their married child and spouse if done right.
Confirmed no tax of gifts to the receiver, only a requirement to file a gift tax return if the annual limit is exceeded.
Loans are not the way to go. A loan would require interest to be paid - taxable income to the lender, probably no tax deduction to the borrower.
Titles to property are critical - whether held in joint name or joint tenants with right of survivorship or other.
From a CPA
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Facts are stubborn things; and whatever may be our wishes, our inclinations, or the dictates of our passions, they cannot alter the state of facts and evidence. John Adams
Last edited by Haggar; 04-07-2024 at 03:37 PM.
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