I bought $10,000 ibond last year for my 19 years old child at Treasury Direct under her name and social security number. Will sell the ibond this year and transfer to her checking account. Will this $10,000 be this year's gift or last year's?
The tax year the gift was made (property transferred) controls (last year).
You are under the $17,000 per individual --- so no Form 709 required. Are you planning to give her more money in the same year? And......You say it was purchased under her name and SSN. If the bond was in her name and she cashes/sells it and puts it in her checking account---that was just her own bond and her own money--not a gift from you when she cashes it.
Why are you asking which year to call it a gift?
Some information about gifts:
Gifts given to family members, friends or other individuals are not deductible. Gifts received are not taxable to the person who received the gift, and are not entered on a tax return.
If your gift exceeds the yearly limit ($17,000 per individual) imposed by the gift tax rules, then you will need to complete a Form 709 gift tax form and send it to the IRS, although it is very unlikely that you will owe any tax.
TurboTax does not support Form 709. It is not an income tax form and would not be included as part of an income tax return.
Here is a link to the form:
https://www.irs.gov/pub/irs-pdf/f709.pdf
https://turbotax.intuit.com/tax-tips/estates/the-gift-tax-made-simple/L5tGWVC8N
Yes, I am planning to give her more money this year.
@TaxHelp1234 wrote:
$10,000 is last year's gift?
Yes, you made the gift when you put the bond in her name.