Hi
I am a little bit confused for the concept for the gift. Let us take one example. If I rent a flat to live myself including my spouse and my kid. Sometimes, parent or parent in law may live here a while, who come to visit and also help take care of the kid. I think this is what the normal family will do. Shall we consider the room living to the spouse, kid, parent or parent in law as gift? I think no, right?
Thanks,
J
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There is nothing to enter on a tax return about having relatives visit and stay with you for awhile.
No. And there are no tax consequences.
thanks. and I pay the rent and let my spouse and kid living in the flat. There are also no tax consquence, right?
thanks. So no tax consequence for everyone, right?
Right.
Q. Shall I consider providing living space to my spouse, kid, parent or parent in law as gift to them?
A. Simple answer: No, in all four cases.
Support of your spouse or dependent child, including shelter, is not a gift. Allowing others to stay temporarily in property you rent, for your own use, would also not be considered a gift.
Paying rent for the domicile of a relative, who is not your dependent, might be considered a gift.
"Gift Tax" is somewhat of a misnomer. Even though a gift tax return may be required, very few people ever actually pay federal gift tax. The purpose of the gift tax return is usually only to document a reduction in the allowable estate tax exemption.
See https://turbotax.intuit.com/tax-tools/tax-tips/Tax-Planning-and-Checklists/The-Gift-Tax-Made-Simple/...
thanks
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