MY WIFE AND i WANT TO GIFT THE MAXIMUM NON TAXABLE AMOUNT TO OUR SON. wHAT TAX LIABILITIES ARE ASSUMED BY BOTH PARTIES?

[ww2056555]

hOW DO WE ACCOMPLISH THIS TRANSFER WITHOUT INCERRING EXTREME TAX LIABILITY?
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[DoninGA]

You can each gift to him $17,000 in 2023 without any tax consequences for either of you for a total of $34,000

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

The giver of the gift does not report the gift given on a tax return.  If the gift given is over $17,000 to an individual then the gift given is reported on an IRS form 709.  However, there are no taxes owed on the gift if all gifts ever given have a total of less than $12.92 million in 2023.

[VolvoGirl]

And if your son is married you and your wife can each give his spouse 17,000.  For a total of 68,000.

[fanfare]

There is no maximum gift.

You wouldn't deprive your son just because you don't want to fill out that pesky Form 709, now would you?

@ww2056555 

[Opus 17]

No gift tax is owed unless your lifetime total gifts plus estate is more than $13 million.  Form 709 is used to track your annual gifts against your total, but even a requirement to file form 709 almost never results in actual tax owed.

If you have more than that to give, see an estate planner before you make any gifts larger than $17,000 per person per year.

But if you expect your lifetime gifts plus the value of your estate to be less than $13 million, I would just make whatever gifts you want to make and file form 709.  Just note that form 709 is due at the same time as a regular tax return (April 15, 2024 for gifts made in 2023) but the form is not included with your tax return, it is filed separately, and Turbotax does not prepare this form for you. 

[Carl]

The total amount that can be given with no tax consequences in your lifetime or at your death is $12,920,000 for 2023. For 2023 any amount over $17,000 has to be reported by the giver to the IRS on IRS Form 709. The recipient reports nothing. You will not pay tax on it provided it's less than the lifetime allowance. It's just a reporting requirement. TurboTax does not support the IRS Form 709.