Gift Tax

Forum|Forum|3 years ago
June 28, 2023
2 replies
32 views

On gifts to children such as paying rent, utilities and food coming from a revocable trust fund; what is the 2023 yearly limit before taxes have to be paid?

Ask the Experts - Energy - June 2023

DoninGA

Level 15

Gifts received are not reported on nor taxable on tax return, regardless of the amount received.

hbcracAuthor

Level 2

What about for the giver (the revocable trust is the giver) since there are 2 trustees in the trust?

DoninGA

Level 15

Only individuals are required to file gift tax returns. If a trust, estate, partnership, or corporation makes a gift, the individual beneficiaries, partners, or stockholders are considered donors and may be liable for the gift and GST taxes.

For tax year 2023 the annual exclusion amount for gifts given to an individual is $17,000.

Go to this IRS website for Form 709 United States Gift (and Generation-Skipping Transfer) Tax Return instructions - https://www.irs.gov/pub/irs-pdf/i709.pdf

Esther M

Level 4

Hi hbcrac,

With respect to gifts, it is the donor that pays the tax. You do not need to report gifts to any one individual if the amount is less than $16,000 for the tax year 2022 or $17,000 for tax year 2023. If more than that, then you will report the gifts on Form 709: United States Gift (and Generation-Skipping Transfer) Tax Return.

IRS Frequently Asked Questions on Gift Tax