- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Get your taxes done using TurboTax
That is called a tax avoidance scheme that I would steer clear of if I were you ... however, they can give more than the max $14K if they want they would just need to file a gift tax return even if they would not owe any gift tax.
Or if they were smart they would give $14K to each this tax year and come Jan 1 they can do it again and the max increases to $15K in 2018.
"Gift Tax" is somewhat of a misnomer. Even though a gift tax return may be required, very few people ever actually pay federal gift tax. The purpose of the gift tax return is usually only to document a reduction in the allowable estate tax exemption.
You will have to file a gift tax return to report the gifts, but you will not actually have to pay any gift tax unless you have made gifts totaling over $5.45 million over your lifetime.
A gift tax return is separate from income tax. It does not go on her income tax return. TurboTax cannot be used to prepare a gift tax return.