Gift Documentation

[Misky1951]

I'm giving a cash gift to a relative. It's under the $18k max per IRS guidelines. So I will pay any related taxes and my relative will not have any taxes to pay.

Is there any documentation to complete like an acceptance letter or something? IRS guidelines were not clear on this.

[Spartan86]

You have to report nothing. And you will pay no tax.

https://money.usnews.com/money/personal-finance/taxes/articles/gift-tax-tax-rules-to-know-if-you-give-or-receive-cash

[retiredguy123]

Taxes on gifts is one of the most misunderstood tax concepts. Neither the giver or the receiver of a gift ever owes any income tax. And, Federal estate taxes don't start until your estate exceeds $13.61 million in 2024. If you give one recipient more than $18,000 in 2024, you must file a gift tax return, but you do not owe any tax. The only purpose for filing the return is because gifts exceeding $18,000 will reduce the lifetime exclusion of $13.61 million. If you give less than $18,000, you don't need to do anything.