How much cash can I give without tax?

Question

How much cash can I give my grandson without tax for him or me?

Answer 1

It is not so easy as Answerer # 2 makes it seem.

First, the tax would be to you. Yes this is double taxation as you already paid taxes on your money when you earned it. We really need to quit voting these same idiots back into office.

If you pay for tuition or education directly, the tax does not apply. If it is for healthcare, again does not apply.

Also, if you are married you can give your grandson up to $22,000 without the tax coming into play.

However, there is a annual/lifetime Gift Tax Exclusion. So you may or may not end up paying the tax, you would have to file the return. But then you need to look at the ramifications because it could affect your estate taxes too. If you are planning on a large gift, go see your tax or estate professional they will help you out.

Stupid IRS & Government, they get all the money.

Answer 2

As Robert (answer #2) said the limit in 2006 is $12,000 before there are any gift tax consequences. As Gem (answer #3) said, it is not that simple, Assuming you give cash in excess of $12,000 to a single individual in a year, you are required to file a gift tax return. There is a 'Unified Credit' that allows $1,000,000 (last I checked) of reported gifts over your lifetime before you actually pay tax. In addition, if you pay tuition and/or medical expences directly on your grandsons behalf, this does not count toward either limit. The liked below is an IRS page about gift taxes. If you are able to give enough to be conserned about these rules, if is worth your time and money to consult a professional.

Answer 3

You can $12,000 per year without paying a gift tax. If you are married your spouse can also give $12,000 without paying a gift tax.

Answer 4

it falls under gift tax.

you can give up to $12000 in 2006 tax free

Answer 5

give him a money order you pay nothing