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lighthouse143
New Member

Can i give my children 50,000 without tax repercutions

I live in north Carolina
7 Replies
DoninGA
Level 15

Can i give my children 50,000 without tax repercutions

You can gift up to $14,000 to any single individual in a year without have to report the gift on a gift tax return.  If your gift is greater than $14,000 then you are required to file a Form 709 Gift Tax Return with the IRS.  However, if your total gifts given in your lifetime are less than $5.45 million there will be no gift taxes assessed.

The receiver of the gift does not report the gift on their tax return, regardless of the amount received.

TurboTax does not support IRS Form 709

IRS Form 709 - https://www.irs.gov/pub/irs-pdf/f709.pdf

IRS Form 709 instructions - https://www.irs.gov/pub/irs-pdf/i709.pdf

mck386490
New Member

Can i give my children 50,000 without tax repercutions

Can I give my daughter $70,000 at once which is 5 years gifts of annual $14,000?

davidbroadhurst
New Member

Can i give my children 50,000 without tax repercutions

We want to gift our daughter $50,000 for a home mortgage down payment.  Do we file a Gift Tax form on the difference between the $50K gift and the exempted amount?  What then are our tax liabilities?

KrisD15
Expert Alumni

Can i give my children 50,000 without tax repercutions

Anyone may gift up to 15,000 per person per year. This would be double if each spouse elects to gift the same recipient.

Once that limit is breached, the Taxpayer files Form 709.

 

The tax consequence will more than likely be none. 

 

You will have a choice of paying tax on the additional 35,000 (20,000 if there are 2 of you and you each gift her 15,000) OR just allocate that "Overage" towards your lifetime limit which is now 11.58 million.

 

You each must file a 709 if there are 2 of you and you each gift her 15,000.

 

Below is a link to the instructions and form. 

IRS Form 709

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Naseemaltaf
New Member

Can i give my children 50,000 without tax repercutions

Isn't it that a Lifetime Tax-exempted Gift Exclusion can be used up to the limit of 11.5Millions?

 

 

DoninGA
Level 15

Can i give my children 50,000 without tax repercutions


@Naseemaltaf  wrote:

Isn't it that a Lifetime Tax-exempted Gift Exclusion can be used up to the limit of 11.5Millions?

 

 


The answer provided to the original question was from several years ago.  When the posts from the AnswerXchange were migrated over to this forum the dates were all changed to 2019.  The original answer was for tax year 2016.

 

For tax year 2020 the exclusion amount is $15,000 for each gift to an individual per year.  The Lifetime exclusion is $11.58 million.

tagteam
Level 15

Can i give my children 50,000 without tax repercutions


@Naseemaltaf  wrote:

Isn't it that a Lifetime Tax-exempted Gift Exclusion can be used up to the limit of 11.5Millions?


@Naseemaltaf  The lifetime gift tax exemption is $11.7 million for 2021, while the annual gift tax exclusion is $15,000 (a gift tax return is required to be filed for gifts exceeding that amount per individual donee).

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