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fglucas54
New Member

Limit on parent donation to children, and tax on amount over limit, and IRS reference?

 
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IsabellaG
Expert Alumni

Limit on parent donation to children, and tax on amount over limit, and IRS reference?

The Gift Tax  is calculated on giving a lifetime's worth of gifts of more than $5.49 million. 

You would need to file a Gift Tax Return, Form 709  if you gave any one person more than the annual exclusion amount. The annual exclusion for 2014, 2015, 2016 and 2017 is $14,000. For 2018 it's 15,000. Married couples are each allowed the exclusion amount for gifts.

The following gifts are not taxable gifts:

  1. Gifts that are not more than the annual exclusion for the calendar year.
  2. Tuition or medical expenses you pay for someone (the educational and medical exclusions).

See this IRS information on Gift Tax.


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IsabellaG
Expert Alumni

Limit on parent donation to children, and tax on amount over limit, and IRS reference?

The Gift Tax  is calculated on giving a lifetime's worth of gifts of more than $5.49 million. 

You would need to file a Gift Tax Return, Form 709  if you gave any one person more than the annual exclusion amount. The annual exclusion for 2014, 2015, 2016 and 2017 is $14,000. For 2018 it's 15,000. Married couples are each allowed the exclusion amount for gifts.

The following gifts are not taxable gifts:

  1. Gifts that are not more than the annual exclusion for the calendar year.
  2. Tuition or medical expenses you pay for someone (the educational and medical exclusions).

See this IRS information on Gift Tax.


**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
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