How much money can I give to my children each year without incurring a gift tax?

Answer 1

For 2007, each individual may give up to $12,000 a year to another individual. So, if your kids are married, you could give your kids each $12k and their spouses each $12k. If you are married, your spouse could do the same. So it could be anywhere from $12k - $48k depending on marital statuses for each of you.

The limit changes periodically, so if you are giving over multiple years, you should check each year.

Also, ridder was not completely correct about the bank withdrawals - it's only cash withdrawals that the banks are concerned with. You can write a check for more than $10k without any problem.

And ainger was incorrect in saying that if you have used up your exemption that you have to give $100,000 to give $54,000.....the recipient does not pay the tax.....to give them $54,000, you would give them $54,000. Then the tax that you would pay is computed based on the tax table in the instructions for form 709 ( http://www.irs.gov/pub/irs-pdf/i709.pdf ) Rates range from 18% to 46% depending on the size of the gift.

For a gift of $54,000 the tax that you (not the recipient) would pay is $11,560, or an effective rate of 21.4%, so to give a gift of $54,000 it would cost you $65,560 including both the gift and the tax.

Answer 2

As others have indicted you can gift up to $12,000 ($24,000 if your spouse files a gift splitting tax return) per year to any donee inluding your children, and there is a $1 million life time exclusion.

In addition, you can make payments to medical service providers (you must pay them directly, not give the money to the children) in an unlimited amount even if you are not claiming the person receiving the medical treatment as a dependent, and you can make unlimited educational payments as long as you make the payment directly to the educational institution. Again this is not limited to dependents.

In addition, there is a concept called a net gift where even though the gift tax is imposed on you, you can arrange for the donee to pay the gift tax as part of the agreement for your making the gift.

Answer 3

You can give as much as you want. In the UK there is no tax on gifts. The only possible tax is if you die within 7 years of making the gift and your estate is big enough to pay Inheritance Tax.

Answer 4

You may give $12,000 a year to each child 24,000 i fyour husband agrees to gift split. Anything over that a form has to be filed out and sent to the irs. once you have used your $1,000,000 exemptions you pay tax at a rate of 46% therefore to give 54,000 you must give 100,000. It is best to save your exemption unless you are using advanced techniques.

Answer 5

Currently you can give a gift of up to $12,000 to an individual without tax consequences and without having to file any forms with the government.

Answer 6

In tax year 2007 the per person limit is 12K.

Answer 7

$10,000 If you do this , it will be reported by the bank to the feds . Not that it is a bad thing. Banks are required under the Patriot act to report large amounts of money withdrawn from accounts.