Thankyou Tagteam for your reply.
Your response is what I initially thought but given that the enrolled agent at the well known tax prep company said to include all gifts, including those under $15,000, caused me to look for supporting documentation. The results seem to support not including gifts under $15,000.
The instructions are poorly written but...
- I did find that the directions for the worksheet for Schedule B state: "Enter the amount of ALL Taxable gifts.
- The definition of "Taxable Gifts" is poorly defined but the subject seems to be addressed under Annual Exclusion: "All of the gifts made during the calendar year to a donee are fully excluded under the annual exclusion if they are all gifts of present interest and they total $15,000 or less". This seems to support not including gifts under $15,000.
- U.S. Code § 2503 - Taxable gifts (This is quite old)
(a)General definition The term “taxable gifts” means the total amount of gifts made during the calendar year, less the deductions provided in subchapter C (section 2522 and following).
(b)Exclusions from gifts
(1)In general
In the case of gifts (other than gifts of future interests in property) made to any person by the donor during the calendar year, the first $10,000 of such gifts to such person shall not, for purposes of subsection (a), be included in the total amount of gifts made during such year.
I am aware of the GST Exemption and the change to the annual exclusion to $16,000 for 2022.
