Hello, I request your suggestion:
I live in CA - community property state. I gifted 50k to our daughter from my own account of my earnings (not joint). I submitted form 709 but did not choose splitting the gifts and my husband did not file a tax return sharing half the amount. My husband and I file taxes as Married filing separately and keep our accounts separate. he doesn't believe in gifting to children in general. So I submitted 709 with the entire amount in 1 form on my name.
1) Would there be consequence to us or our daughter later from IRS that he did not file tax return in community property state? In this case, would the amount I gifted still be considered community property?
2) In future, if were to gift my separate property (inherited and not earned during the time we are married), then would it be ok if I only submitted the 709 form ? How am I expected to prove that it is separate property in that case?
Thanks in advance for your advice.
