topic Will my ex husband be subject to any gift tax if he gives me and our two adult children $100,000 each in cash in one year? in Get your taxes done using TurboTax

Will my ex husband be subject to any gift tax if he gives me and our two adult children $100,000 each in cash in one year?

cmw47 — Tue, 13 Aug 2019 19:40:33 GMT

Re: Will my ex husband be subject to any gift tax if he gives me and our two adult children $100,000 each in cash in one year?

Anonymous_ — Tue, 13 Aug 2019 20:32:05 GMT

The annual gift exclusion is $15,000 to each individual so he will have to file a gift tax return (Form 709).

However, he will not have to pay gift tax until he exceeds his lifetime exemption of $11.4 million.

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

Re: Will my ex husband be subject to any gift tax if he gives me and our two adult children $100,000 each in cash in one year?

cmw47 — Tue, 13 Aug 2019 21:28:04 GMT

Thank you very much. That's what I thought too.

Re: Will my ex husband be subject to any gift tax if he gives me and our two adult children $100,000 each in cash in one year?

cmw47 — Thu, 20 Feb 2020 04:28:03 GMT

Hi there,

My ex-husband gave me $15,000 and our son $20,000 in cash in 2019. I filled out form 709 and ended up with $900 in taxes (18% of the excess of $15,000 from the gift money of $20,000 to our son). I thought the gift money is covered under the $11.4 million lifetime exemption. I couldn't figure out where I did wrong on form 709.

Re: Will my ex husband be subject to any gift tax if he gives me and our two adult children $100,...

Irene2805 — Thu, 20 Feb 2020 16:22:13 GMT

Your ex-husband (the giver) should be filling out Form 709, not you (the recipient).

Since your ex-husband gave gifts totaling $35,000, he would be taxed on the amount over the exclusion $15,000 for each recipient.

The tax should calculate and appear on Form 709, line 6. However, there should also be a credit for the same amount on line 12 if the donor has not exceeded the exemption.

Re: Will my ex husband be subject to any gift tax if he gives me and our two adult children $100,...

cmw47 — Fri, 21 Feb 2020 05:46:45 GMT

I'm helping my ex-husband filling out form 709.

I don't understand how you get a credit on line 12.

Line 1 and 3 are both $5,000

Line 4 and 6 are $900

Line 15, 17 and 19 are all $900.

The rest of lines are all 0.

Line 12 is the smaller of line 6 or 11, so that means line 12 is 0; no credit to offset $900.

Re: Will my ex husband be subject to any gift tax if he gives me and our two adult children $100,...

Irene2805 — Fri, 21 Feb 2020 13:53:26 GMT

You're missing the applicable credit amount on line 7. On Form 709, p.1:

Your first 6 lines are correct.
Line 7, 9, and 11 should be $4,505,800.
Lines 12 and 14 should be $900.
The rest of the lines should be zero.