Posted on: 23rd Dec, 2008 01:38 pm
Lets discuss for example:
The exempt taxable gift exemption raises to $13,000 in 2009. If you gift three items to one individual, ($9135 one car, $6275 on another car and $4275 in a recreational vehicle, for a total of $19,685), would it be tax exempted.
reading the IRS gift tax guidelines, you can exempt gift tax in 2009 $13,000 per item . I am not clear if it is $13,000 total to one individual, or $13,000 per item, regardless if the recipient is the same individual.
Please advise.
Thanks
The exempt taxable gift exemption raises to $13,000 in 2009. If you gift three items to one individual, ($9135 one car, $6275 on another car and $4275 in a recreational vehicle, for a total of $19,685), would it be tax exempted.
reading the IRS gift tax guidelines, you can exempt gift tax in 2009 $13,000 per item . I am not clear if it is $13,000 total to one individual, or $13,000 per item, regardless if the recipient is the same individual.
Please advise.
Thanks
Hi eddahopkins!
Welcome to forums!
As far as I know, that annual gift tax exemption in 2009 will be $13,000. Thus, you can gift anyone anything within this amount, you will not be charged taxes. In case, this amount exceeds, you will be charged a gift tax.
"If you gift three items to one individual, ($9135 one car, $6275 on another car and $4275 in a recreational vehicle, for a total of $19,685), would it be tax exempted."
In this case, you will be charged a gift tax because the $13,000 amount is exceeded.
Feel free to ask if you have further queries.
Sussane
Welcome to forums!
As far as I know, that annual gift tax exemption in 2009 will be $13,000. Thus, you can gift anyone anything within this amount, you will not be charged taxes. In case, this amount exceeds, you will be charged a gift tax.
"If you gift three items to one individual, ($9135 one car, $6275 on another car and $4275 in a recreational vehicle, for a total of $19,685), would it be tax exempted."
In this case, you will be charged a gift tax because the $13,000 amount is exceeded.
Feel free to ask if you have further queries.
Sussane
Sue,
you will have tax but you do not pay taxes because you can apply the tax an exemption to the $6,685 ($19,685-$13,000) against the $345,800 unified tax credit. Say, if the tax is $3000, then you will have available for future years $342,800 a balance of unified tax credit
you will have tax but you do not pay taxes because you can apply the tax an exemption to the $6,685 ($19,685-$13,000) against the $345,800 unified tax credit. Say, if the tax is $3000, then you will have available for future years $342,800 a balance of unified tax credit
Edda thanks for that info i was wondering about this too as my parents want to give me 50k gift for a down payment on a house. Any info on this?
Hi msnover!
Welcome back to forums!
As your parents are gifting you the money, they will be liable to pay gift taxes. However, transfer of gifts up to $13,000 per person per year is exempt from taxes. Apart from this, a lifetime gifting limit of $1,000,000 is also exempt from taxes.
Sussane
Welcome back to forums!
As your parents are gifting you the money, they will be liable to pay gift taxes. However, transfer of gifts up to $13,000 per person per year is exempt from taxes. Apart from this, a lifetime gifting limit of $1,000,000 is also exempt from taxes.
Sussane
Oh ok so i should be ok then correct? I would still have 950k left? If not can my parents just give me the cash in person and i deposit it in the bank?
They can definitely give you the loan in person. But as far as the taxes are concerned, consult a tax adviser regarding this.