are there any forms that have to be filed if i give $20,000 to our son, how does it become gift splitting, my wife does agrees???
Limited Liability Company (LLC) Lawyer
The U.S. Gift Tax Return is called a form 709. I will provide a link to the form below.
Lines 12 through 18 of the gift tax return form have to do with a spousal consent to have gifts to 3rd parties treated as if made half by each spouse. Line 18 is for the signature of the consenting spouse.
Additionally, if both spouses are filing gift tax returns, the directions require that both returns be mailed in the same envelope.
Its pretty simple, actually. You might still want to have an attorney or account assist in the preparation of the return.
Answering your question on AVVO, does not create a lawyer-client relationship between us. Under the rules of the Supreme Court of Illinois, or the rules of other jurisdictions, this answer may be regarded as advertising. Because questions provided on AVVO simply cannot contain a complete description of all the relevant facts, information contained in this answer should not be considered as individual legal advice or legal opinion. You are urged to consult an attorney licensed to practice in your State regarding your own legal situation.
3 lawyers agree
Estate Planning Attorney
You and your wife can give $13,000 each to your son.
Your $20,000 gift does not have to reported because it is less than $26,000.
You can repeat this in January without reporting to the IRS.
If you give more than $26,000-you can file the 709 gift tax return and elect to pay the tax or use up part of your lifetime exemption.
The answer given does not imply that an attorney-client relationship has been established and your best course of action is to have legal representation in this matter.
2 lawyers agree
Both attorney offer sound advice. But be careful here. If it was you who gave the $20,000 gift with your separate funds, then you must file a gift tax return, Form 709, and your wife must consent to gift splitting on such form. You should have a good tax accountant or tax attorney assist you.
Hope this helps.
Please remember to designate a best answer to your question.
Mr. Fromm is licensed to practice law throughout the state of PA with offices in Philadelphia and Montgomery Counties. He is authorized to handle IRS matters throughout the United States. His phone number is 215-735-2336 or his email address is email@example.com , his website for more tax, estate and business articles is www.sjfpc.com.
LEGAL DISCLAIMER Mr. Fromm is licensed to practice law throughout the state of PA with offices in Philadelphia and Montgomery Counties. He is authorized to handle IRS matters throughout the United States. His phone number is 215-735-2336 or his email address is firstname.lastname@example.org , his website is www.sjfpc.com. and his blog is <http://frommtaxes.wordpress.com/> Mr. Fromm is ethically required to state that the response herein is not legal advice and does not create an attorney/ client relationship. Also, there are no recognized legal specialties under Pennsylvania law. Any references to a trust, estate or tax lawyer refer only to the fact that Mr. Fromm limits his practice to these areas of the law. These responses are only in the form of legal education and are intended to only provide general information about the matter within the question. Oftentimes the question does not include significant and important facts and timelines that if known could significantly change the reply or make such reply unsuitable. Mr. Fromm strongly advises the questioner to confer with an attorney in their state in order to ensure proper advice is received. By using this site you understand and agree that there is no attorney client relationship or confidentiality between you and the attorney responding. This site should not be used as a substitute for competent legal advice from a licensed attorney that practices in the subject area in your jurisdiction, who is familiar with your specific facts and all of the circumstances and with whom you have an attorney client relationship. The law changes frequently and varies from jurisdiction to jurisdiction. The information and materials provided are general in nature, and may not apply to a specific factual or legal circumstance described in the question or omitted from the question. Circular 230 Disclaimer - Any information in this comment may not be used to eliminate or reduce penalties by the IRS or any other governmental agency.
There are several items of information I would need to know before appropriately responding to your question. I suggest that you either consult an attorney or qualified tax return preparer or research the matter further. If you choose to look into the issues yourself, start with the Instructions for Form 709 and IRS Publication 950. I have included the links to both resources below. Good luck!