When my wife and I beame engaged in March 2007, I gave her a valuable ring. We had our wedding in early May 2007 and I gave her some money so that she could have her own bank account. I was wondering if I had to pay gift tax for any of the above?
2007-05-15 05:10:09 · 3 answers · asked by Mike 1 in Business & Finance ➔ Taxes ➔ United States
You don't pay gift tax, or report gifts, to a spouse, so the money you gave her when you got married isn't reported.
The ring was a gift and you weren't married yet then. You can give gifts up to $12,000 in value without reporting them. Unless the ring was worth more than that, it's not an issue.
2007-05-15 05:17:03 · answer #1 · answered by Judy 7 · 1⤊ 1⤋
The money you gave her after your marriage is a transfer between spouses and not taxable.
The engagement ring was not a gratuitous transfer of property since it was conditioned upon the promise of marriage. Therefore, it is not a gift per the IRS definition and is not taxable.
2007-05-15 12:24:47 · answer #2 · answered by ninasgramma 7 · 2⤊ 0⤋
If the ring is under $12,000, then no, you do not owe gift taxes on it.
If the ring happens to be over $12,000 (you little spender you), just consider the ring "your property" until you get married. Then, you can start calling it her property, because spouses are exempt from gift taxes.
2007-05-15 12:23:39 · answer #3 · answered by Mav. 3 · 0⤊ 1⤋