How many $ I can send as a gift to my son in US to avoid any taxes etc?

Question

Father working in Dubai and son working in US.

Answer 1

If you are a U.S. Citizen you may be required to file taxes on your income, and even if not there are statute of limitations reasons why you should anyway.

If you are not a U.S. Citizen but received income from certain U.S. sources then you may be required to file as well.

So... if either apply to you, then you can give up to $12,000 per year per person tax free to you (i.e. you can give many people up to $12,000 each tax free). The tax giver is required to pay the tax beyond this amount. The recipient will not have to pay tax no matter how much is given. (note: If you give a gift that earns money, stock dividends for example, the recipient would need to pay tax on the income earned by the gift, but not the value of the gift itself.)

Beyond the $12,000 each individual is granted a lifetime credit that can be given. Currently, in your lifetime you can give one million dollars total and not be taxed in the U.S. So this would be on any amounts that go over $12,000 per person in one year. This is a credit on the tax that would be imposed on any transfers that total one million dollars over the course of your lifetime. (say you give $20,000 dollars in one year, you get a $12,000 exemption, and on the extra $8,000 you use some of your credit. Next year you have another $12,000 yearly exemption, but your total lifetime credit is still $8000 less.)

Keep in mind that this lifetime credit also counts towards your estate when you die, so if you have a sizeable estate when you pass on, and you use up a lot of your lifetime credit while you are alive, your estate may end up paying more taxes on any estate tax that may exist at that time.

If you plan on transfering more that $12,000 per year I advise that you speak with a competent financial advisor to be sure of what is the smartest course of action for you.

Note: You may double this amount to $24,000 per year if you are married and both you and your spouse consent to the gift. (You can't double it if one of you object to the gift and you can't work it out). This only works for one gift per year per person from both of you. You can't each claim a $24,000 exclusion. It's one or the other. Think of it as you and your spouse each seperately giving $12,000 to the person.

Answer 2

You can gift your son $12,000 per year gift tax free. If you are married your spouse can also give $12,000 for a total of $24,000.
You can also spend any amount you want for tuition and medical expenses for your son in a year. These payments however must be made directly to the school or medical provider in order to avoid being treated as a gift.
Overall you have an exemption from gift tax for amounts given that are greater than the above for $1,000,000 in a lifetime.
Based on 35 years of estate, gift and trust advising.

Answer 3

If he already sold the property, the gain on the sale is taxable income to him whether he gives the money away or not. Gifts are not tax deductible. He can give the $80K away but he will still have to pay income tax on the gain he made on the sale. If he had given the property instead of selling it, then the taxes on the gain would be paid by the donees instead of the donor.

Answer 4

Your son does not have to pay tax on any amount of gifts received. Gift tax is imposed on the donor.

You would be required to file a gift tax return for gifts to any one individual in excess of $12,000 ($24,000 if you're married). You can give lifetime gifts of $1,000,000 tax-free with the Unified Credit.

Answer 5

If it's a gift the limit is $12,000. per year.

Answer 6

You can send all you like as long as neither of you claim it on your taxes.

For example, If I earned a million dollars and paid all my taxes I can give anything to anyone and no one will care. But, the rules will change if I deduct my gift on my taxes.

Answer 7

I believe it's $500 max

Answer 8

$ 10,000 and under gifts are non taxable.