This is a question for a tax atty, estate planning atty, or CPA. You need to talk to someone in your state familiar with both state and federal laws on this. Usually it depends upon how much you give in any specific year, what relation the person is, and whether it is to apply against the estate exemption applicable to inheritance taxes.
A tax attorney or CPA is in the best position to answer this question. Factors to consider are each amount given, to whom they were given and over what time frame I.e. lump sum.
Call for a free consultation at 727-937-1400 or visit us on the Web at www.serviceandjustice.com.
The gift taxable. However, you and your wife each have a $5 Million exclusion over your lifetime. As long as you do not exceed that, you will not owe any tax.
This answer does not establish an attorney-client relationship, Moreover, this attorney is Licensed to practiced law ONLY in LOUISIANA and answers to questions from other jurisdictions or states are meant to provide only general information. Users should contact a local attorney in their jurisdiction or state.
Generally, those receiving the gifts are liable. The giftee must claim it as ascension to wealth (gross income), and the giftor doesn't do anything.
The settlement receivors are liable for their ascension to wealth ($1m) under normal income rules and the family/friends are liable under gift rules (there are particular rules for children/grandchildren).
Consult a tax/estate planning attorney or CPA, though. Tax is a uniquely complicated field.
Answers to questions does not create an attorney/client relationship. I only am your attorney if I have entered into a written contract, signed by me, wherein I expressly assent to be your attorney. Nothing I post should be construed as legal advice to be acted upon, it is merely a legal opinion.
You and your wife each have an annual gift allowance of, $13,000.00 to anyone and as many as you choose. You really should hire a CPA or tax attorney for more details.
So there is no misunderstanding, this answer does not create an attorney/client relationship and you cannot presume that I am your lawyer or that my advice can be relied upon in any way other than for information only. You will not become my client unless and until you retain me.