$60,000 in one check with only my dad's name, but can we say it is from my mom and dad to me and my wife?

[wcheng3000]

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.

[SweetieJean]

He borrowed money to give you a gift? Are there any strings attached?

[wcheng3000]

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.

[Lisa995]

Gift tax returns are just reporting forms, you don't pay any tax on them.

[wcheng3000]

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!!!

[Lisa995]

Youre welcome.

[Anita01 · Accepted solution]

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.

[wcheng3000]

Thanks! That was the part i was a little confused about, but now i understand.