Can someone help clarify whether Gift Taxes are due and on amounts above yearly limits?
My understanding is that there's a lifetime limit ($13M+) and a yearly cap per person. If you gift someone more than the yearly limit, you have to file form 709 but that does not make it taxable if your lifetime gifts are under that $13M cap.
However, I came across this blog post on TurboTax which has gift tax brackets and seems to indicate the tax rate applies once you exceed the yearly limit??
https://blog.turbotax.intuit.com/tax-planning-2/5-simple-tax-tips-for-end-of-the-year-giving-15938/
My scenario is that my parents are considering gifting their children $100k each. This puts them above the yearly limit so they'll have to file 709. But will they owe any taxes?
