Can I give a gift of $200,000 to my daughter this year and another 300,000 next year if the limit is under 5 millions in the whole life? Do I have to pay tax?

[khn9244]

How many times  in my whole life can I give a gift to my son if it does not exceed 5 millions?

[Critter]

<a rel="nofollow" target="_blank" href="https://turbotax.intuit.com/tax-tools/tax-tips/Tax-Planning-and-Checklists/The-Gift-Tax-Made-Simple/...>

[creyes5361]

For the year 2018, you can make individual $15,000 gifts to as many people as you want. You just cannot gift any one recipient more than $15,000 within one year. If you’re married, you and your spouse can each gift up to $15,000 to any one recipient.
If you gift more than the exclusion to a recipient, you will need to file tax forms to disclose those gifts to the IRS. You may also have to pay taxes on it. If that’s the case, the tax rates range from 18% up to 40%. However, you won’t have to pay any taxes as long as you haven’t hit the lifetime gift tax exemption.
For the year the IRS allows you to gift up to $11.2 million over your lifetime without having to pay gift tax.
So let’s say that in 2018 you gift $210,000 to your daughter. This gift is $185,000 over the annual gift exclusion. That means you will need to report it to the IRS. However, you won’t immediately have to pay tax on that gift. Instead, the IRS deducts that $185,000 from your lifetime gift tax exemption. Assuming you have never made any other gifts over the annual exemption, your remaining lifetime exemption is now $11 million ($11.2 million minus $185,000).

[Opus 17]

You start paying the gift and estate tax once your lifetime amount of gifts to all persons goes over the $5.4 million limit.  You have to file a gift tax return to report every gift of more than $14,000 per person per year so the IRS can count it against your lifetime exclusion.

https://www.irs.gov/businesses/small-businesses-self-employed/frequently-asked-questions-on-gift-tax...

[SweetieJean]

CT and MN have state gift taxes.

[david4]

Yes and no. You will not pay tax currently, but you do have to file a gift tax return (due 4/15 of the following year). The gift tax return informs the IRS you have reduced your life time limit, and if you still have a taxable estate when you die, the limit is reduced and the estate pays the tax. If your estate is under the lifetime limit, then there won't be tax. For example if your estate is 6,000,000 when you die and you previously gifted 500,000, then your lifetime limit becomes 4,500,000 ( 5,000,000 - 500,000) and your estate will be taxed on 1,500,000 (6,000,000 - 4,500,000). This assumes the lifetime limit is 5,000,000 when you die.

If your estate is 4,000,000 when you die, the taxable estate is zero (4,000,000 - 4,500,000).
Hope this helps.

[TaxGuyBill]

As David pointed out, it also affect the Estate Tax when you die.  In other words, if your total assets are (or will be) over $5,500,000 (including the Gifts), you may want to consult an Estate lawyer for some tax planning.

[Critter]

You may wish to consult an elder attorney to discuss estate planning and medicare planning as they impose a "look back" feature ....  <a rel="nofollow" target="_blank" href="http://www.elderlawanswers.com/medicaids-asset-transfer-rules-12015">http://www.elderlawanswers.com/...>

[Opus 17]

That's an interesting point.  If, for the sake of argument, you were giving away your money so that you would look "poor" and qualify for Medicaid or other long term care, the government can claw that back from the recipients within certain time limits.  Hopefully you are in the best of health and just thinking about helping your kids.  But depending on the circumstances you may want to see an elder law  or estate planning attorney.

[Preziosodiann]

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