I have 5 children and am looking for tax deductions. I understand I can gift 10k per year to each of my children to a max of 100k, and write that money off as a tax deduction- is that accurate?
2007-06-30 17:53:51 · 7 answers · asked by MIDegn 1 in Business & Finance ➔ Taxes ➔ United States
You can gift anyone you want with up to $12,000, but it's not a tax deduction. The $12,000 is the amount you can give to someone without triggering a gift tax that you may have to pay at higher amounts. You can get the basic information here:
http://www.irs.gov/newsroom/article/0,,id=107815,00.html
The $12,000 is per gift giver, per gift receiver. So, for example, if a husband and a wife each gave the maximum to a child, the total amount would be $24,000 without triggering the gift tax. The only gifts that are tax deductions are those made to qualified charities.
2007-06-30 18:02:49 · answer #1 · answered by BeckyBeq 3 · 5⤊ 0⤋
$0. Gifts are not tax deductible, they're TAXABLE to the donor. That's you.
If you give more than $12,000 to any one recipient in a single year you must file a Gift Tax return. You could have a Gift Tax liability if your lifetime unified exclusion amount was used up. Without knowing your entire lifetime gifting history it's not possible to say absolutely what any tax might be, but if you're like most folks you'll never use up the exclusion (currently $1 million) so you won't actually owe any Gift Tax.
2007-06-30 22:17:11 · answer #2 · answered by Bostonian In MO 7 · 4⤊ 1⤋
Nope - the maximum you can give to your children and write off your taxes is ZERO.
The limit you're thinking of is $12,000, not $10,000 - you can give each of them that much each year and you won't have to file a gift tax return on it or pay a gift tax - but you can't give your kids money and write it off your taxes.
2007-06-30 18:21:20 · answer #3 · answered by Judy 7 · 3⤊ 0⤋
You can buy gift through websites. That's tax free.
2007-07-04 16:48:44 · answer #4 · answered by hellenwashington 4 · 0⤊ 0⤋
that's a tricky question...
2016-08-24 07:21:21 · answer #5 · answered by Anonymous · 0⤊ 0⤋
pretty accurate, but, there is always a but, they would have to
report the money as income which may cause their own taxes to go haywire. please, for goodness sakes talk to a tax lawyer before there won't be enough money left to leave.
2007-06-30 18:05:46 · answer #6 · answered by barrbou214 6 · 0⤊ 8⤋
wow your a cheap bastard
2007-06-30 18:02:10 · answer #7 · answered by tabethamarie2002 3 · 0⤊ 7⤋