If my dad borrows from bank of $60,000 and gives me the check. I deposit the check into me and my wife's joint bank account. I know my dad can avoid gift tax of $30,000 for married couple. Can we say other $30,000 from my mom? We will write a letter stating this fact and have it notarized!
Also, this will be for 2018 tax return, so the gift tax exclusion is now $15,000 per individual, just to clarify.
To summarize the comments above, a gift tax return is filed by the giver of the gift and rarely involves paying any tax. It's just a way to keep track of how much of their tax-free estate limit a person has used up prior to their death. Until they exceed the tax-free amount of their estate, their gifts are tax-free for them.
He borrowed money to give you a gift? Are there any strings attached?
No strings attached. He is paying off the line of credit he borrowed himself. I was just wondering if this is an issue he will have with IRS because if so, i will have to write a $30,000 loan agreement with my dad to avoid him paying taxes on the gift.
Gift tax returns are just reporting forms, you don't pay any tax on them.
Ah Lisa995, i think i understand what you mean now. I can get my dad to apply the rest to the lifetime estate exclusion. Thanks!!!
To summarize the comments above, a gift tax return is filed by the giver of the gift and rarely involves paying any tax. It's just a way to keep track of how much of their tax-free estate limit a person has used up prior to their death. Until they exceed the tax-free amount of their estate, their gifts are tax-free for them.