If I give a cash gift of $50,000 to my son, does this need to be reported by me? If yes, how? Does it impact my taxes? Does it impact his taxes?
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You don't report gifts given or received on your personal tax return. If someone gives more than the annual limit to any one person, the giver might have to file a gift tax return form 709 to deduct the gift off their lifetime exclusion but there won't be any taxes due.
For 2024 the limit is 18,000. So you could give someone 18,000 and if they are married their spouse 18,000 for a total of 36,000. And if you are married you and your spouse can each give 18,000 to each of them for a total of 72,000.
IRS 709 form,
https://www.irs.gov/pub/irs-pdf/f709.pdf
IRS 709 Instructions,
https://www.irs.gov/pub/irs-pdf/i709.pdf
Gifts given to an individual are not reported on tax return. Gifts received from an individual are not reported on a tax return.
If a gift given to an individual is greater than $18,000, the giver of the gift has to report the gift to the IRS using Form 709.
There will not be any gift taxes assessed on the gift if all gifts ever given is less than $13 million.
IRS Form 709 is separate from your tax return. It has to be printed and mailed to the IRS using the address that is in the instructions for the form.
IRS website for Form 709 - https://www.irs.gov/forms-pubs/about-form-709
TurboTax does not support Form 709
Yes, you are required to report the gift to the IRS on IRS Form 709 since the amount given in a tax year exceeds the max for that tax year that you can gift without reporting it. Take special note that you will "NOT" pay any taxes on the amount provided the gift doesn't cause you to exceed your lifetime limit of several million dollars, and neither will the recipient. All you are doing is satisfying a legal reporting requirement. The form 709 is filed separately from your tax return and you will not report the amount on your actually tax return anywhere.
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