Cash Gift to Spouse Taxable?

[thomas-burrdett]

I understand the limits of the $14,000 gifts to non-spouse, but am having some difficulty pinpointing the limits of the unlimited marital deduction.

My wife is a US born citizen, and we have separate banking accounts. I want to lend her $30k to purchase real estate that she will pay back within a few months.

I have seen articles online that make it seem like this shouldn't be an issue, even if it's not being paid back. I see others that make it seem as though it's only okay if I charge some sort of interest.

Trying to make sure I don't end up getting taxed on the $30,000 as it's going to move between our accounts. We're very flexible, and can just transfer the money through accounts, write checks, formulate some sort of loan, etc.

[DoninGA]

Gifts to a spouse are not reported on a tax return, regardless of the amount gifted.  Generally gifts to a spouse are not subject to the requirement to file a Form 709.  What you have described is not an exception so there would be no reporting of the gift on a form 709.

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

Gifts to your spouse. You must file a gift tax return if you made any gift to your spouse of a terminable interest that does not meet the exception described in Life estate with power of appointment, or if your spouse is not a U.S. citizen and the total gifts you made to your spouse during the year exceed $149,000. You also must file a gift tax return to make the Qualified Terminable Interest Property (QTIP) election described under Line 12. Election Out of QTIP Treatment of Annuities. Except as described earlier, you do not have to file a gift tax return to report gifts to your spouse regardless of the amount of these gifts and regardless of whether the gifts are present or future interests.