My name was on the deed with my Mom, who had died. So then I distributed some of the money this year (an individual can give up to 11,000 no questions asked), and intend to give the rest next year. Should I slow down on the 11,000 in case IRS doesn't understand?
2006-08-27 08:36:54 · 9 answers · asked by Maldives 3 in Business & Finance ➔ Taxes ➔ United States
You should talk to a CPA. There are all kinds of laws on estate money and gifts. Best to spend a few dollars and get a correct answer then be stuck with a hefty surprise tax bill, with interest.
2006-08-27 08:42:52 · answer #1 · answered by Anonymous · 0⤊ 0⤋
First things first.
Did you pass the deed through probate court to remove your mother's name from the deed? The executor of the will needs to do this. Your mother's estate cannot be closed until all liabilities are paid by the estate and assets are assigned to the proper heirs. An estate tax filing must be submitted to the IRS within 9 months of death.
Once the deed is your's, you are free to do with it whatever you please.
The gift exclusion amount is $12,000 for 2006. It was $11,000 for '04 and '05.
The IRS understands, so there's no need to slow down. The number is not questionable. Above $12,000 a gift tax is due, at $12,000 or below no gift tax is due. That is what the IRS understands - simple pass/fail.
2006-08-27 08:54:21 · answer #2 · answered by szydkids 5 · 0⤊ 0⤋
If your mom's will stated that the money from the sale of the house should be split among you, then it's not a gift, it's an inheritance. If her will didn't specify that, since your name was on the deed with her (and I assume not your brothers' names) the house would be yours to do what you want to with. If you're giving them the money because you think that's fair, not because of provisions in the will, then yes, it's a gift from you to them, and you need to stay within the annual limits to avoid triggering a gift tax. But no need to slow down if you're within the limits.
2006-08-27 09:03:24 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
You need to contact a good attorney.
Was it your intent to buy you brothers' share of the house with the money you gave them? If so, then the money was not a gift, so the $11,000 rule doesn't apply.
Get an attorney to figure it out.
2006-08-27 08:42:40 · answer #4 · answered by Dave 4 · 0⤊ 0⤋
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2016-12-17 18:10:14 · answer #5 · answered by Erika 4 · 0⤊ 0⤋
http://www.irs.gov/newsroom/article/0,,id=107815,00.html you will find your answer here. as long as you keep it 11000 and under you don't have to report it ... but I wouldn't push it ... and thats per year ... the 11K was for 2005 tax year, this is 2006, you may want to hunt around irs.gov for answers to that or ask someone at H&R Block or something like that for the answer.
2006-08-27 08:48:02 · answer #6 · answered by Zenas Walter 3 · 0⤊ 0⤋
You can always give money, but it's the tax consequences you're worried about - so hire a CPA and ASK them.
2006-08-27 08:39:19 · answer #7 · answered by thedavecorp 6 · 0⤊ 0⤋
THE WAY YOU ASKED THAT QUESTION IS NOT LEGAL. WHAT ARE YOU WANTING TO KNOW. ASK THE IRS PEOPLE.
2006-08-27 08:41:25 · answer #8 · answered by the sealer 3 · 0⤊ 0⤋
i really dont think they'll catch on lol
2006-08-27 08:39:15 · answer #9 · answered by samantha h 2 · 0⤊ 0⤋