gift tax
My Mother wants to gift us a $30,000.00 one time gift, she is 87 years old and wants to see the joy on her kids faces before she parts this life,My uestion is will she get stuck with a tax on this gift ?
Asked on 7/13/07, 8:05 am
1 Answer from Attorneys
JASSI SACHDEV
LAW OFFICES OF JASSI S. SACHDEV, P.C.
Re: gift tax
Under IRC 2503(b), your mom can gift each one of you $12000 per year without incurring gift tax implications. This is the annual per donee exclusion. Do the math and see how much each of you gets. If more than 12000 a piece, she would have to file form 709 and report excess of 12000 paid. No gift tax is due if she has not already and cumulatively not used her $1 million gift tax exemption for her lifetime. 709 at this time is only for reporting purposes and must be filed to avoid hassles down the road.
Answered on 7/13/07, 9:59 am
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