Can I give a 10,000 cd to my grandchildren in 2018 will it tax exempt? or does it have to be cash?

Forum|Forum|7 years ago
June 5, 2019
5 replies
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Marketstar

Level 12

Gifts are neither deductible for the donor nor taxable to the recipient.

Gifts received are not reported on your federal tax return, regardless of the amount received

The giver would be required to file a Form 709 Gift tax return if he/she gives over $14,000 to any single individual. Even then, the gifting will not be taxable until the sum total of all gifts exceeds the lifetime limit of $5,490,000

See the following:

https://www.irs.gov/pub/irs-pdf/f709.pdf

https://www.irs.gov/pub/irs-pdf/i709.pdf

VolvoGirl

Level 15

Well if you change the name and ssn on the CD account they might have to pay the tax on the interest. Or are you giving it to them when it matures?

Can I give a 10,000 cd to my grandchildren in 2018 will it tax exempt? or does it have to be cash?

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