Illinois tax law
''Alice'' gave ''Carol'' the maximum tax-free gifting of 13K. Alice wants to give Carol 13K more, so she gives ''Bob'' 13K and tells him to give it to Carol. Does Bob need to hold this money for awhile before giving it to Carol, or can he give it to her as soon as he receives it?
Where in the tax code is this topic covered.
1 Answer from Attorneys
Re: Illinois tax law
If Alice is married, then her husband could also make a gift to Carol.
However, if money is gifted to Bob with the intention of actually gifting it to Carol, then the IRS could require that the 2nd gift is subject to being reported on a 709 gift tax return.
You can find your answers to gift tax questions by downloading the instructions to Form 709 from www.irs.gov.
Gift taxes are generally addressed in I.R.C. �2501 et seq.
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