If I give a gift of money, how do I deduct it from my taxes?

Asked over 3 years ago - Provo, UT

I give my children money each eac (under $12,000). How does that benefit me on my taxes?

Attorney answers (3)

  1. Bryant Keith Martin

    Contributor Level 18

    1

    Lawyer agrees

    Answered . It doesn't help with income taxes. It's a personal expense and not deductible. It saves extate taxes though. The small gifts are exempt ftom gift taxes, but they get the assets out of your estate,
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    (Bryant) Keith Martin
    sbbizlaw.com

  2. Eliz C A Johnson

    Contributor Level 17

    1

    Lawyer agrees

    Answered . It helps for estate tax purposes but not income tax. You cannot deduct the gifts from your income tax return. It helps by getting that money out of your taxable estate and reducing the amount that might be taxed thereby. The fact that it is under $12K means you do not have to file a gift tax return.

    If you liked this answer, click on the thumbs up! Thanks. Eliz. C. A. Johnson Post Office Box 8 Danville,... more
  3. Eliz C A Johnson

    Contributor Level 17

    1

    Lawyer agrees

    Answered . It helps for estate tax purposes but not income tax. You cannot deduct the gifts from your income tax return. It helps by getting that money out of your taxable estate and reducing the amount that might be taxed thereby. The fact that it is under $12K means you do not have to file a gift tax return.

    If you liked this answer, click on the thumbs up! Thanks. Eliz. C. A. Johnson Post Office Box 8 Danville,... more

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