Will my ex husband be subject to any gift tax if he gives me and our two adult children $100,000 each in cash in one year?

[Anonymous_ · Accepted solution]

The annual gift exclusion is $15,000 to each individual so he will have to file a gift tax return (Form 709). 

However, he will not have to pay gift tax until he exceeds his lifetime exemption of $11.4 million.

See https://www.irs.gov/businesses/small-businesses-self-employed/frequently-asked-questions-on-gift-tax...

[cmw47]

Thank you very much.  That's what I thought too.

[cmw47]

Hi there,

My ex-husband gave me $15,000 and our son $20,000 in cash in 2019.  I filled out form 709 and ended up with $900 in taxes (18% of the excess of $15,000 from the gift money of $20,000 to our son).  I thought the gift money is covered under the $11.4 million lifetime exemption.  I couldn't figure out where I did wrong on form 709.

[Irene2805]

Your ex-husband (the giver) should be filling out Form 709, not you (the recipient).

Since your ex-husband gave gifts totaling $35,000, he would be taxed on the amount over the exclusion $15,000 for each recipient.

The tax should calculate and appear on Form 709, line 6.  However, there should also be a credit for the same amount on line 12 if the donor has not exceeded the exemption.

[cmw47]

I'm helping my ex-husband filling out form 709.

I don't understand how you get a credit on line 12.  

Line 1 and 3 are both $5,000

Line 4 and 6 are $900

Line 15, 17 and 19 are all $900.

The rest of lines are all 0.

Line 12 is the smaller of line 6 or 11, so that means line 12 is 0; no credit to offset $900.

[Irene2805]

You're missing the applicable credit amount on line 7.  On Form 709, p.1:

• Your first 6 lines are correct.
• Line 7, 9, and 11 should be $4,505,800.
• Lines 12 and 14 should be $900.
• The rest of the lines should be zero.