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vthokieq

Joined: 10/13/1999 Posts: 74963
Likes: 17053

What's this?

Don't think that's correct.


She can give $15K annually per person and that amount does not count towards her lifetime exemption. She can give above that and count it towards her lifetime exemption, which would reduce her estate tax exemption as well.

For example, say she gave them $100K this year. The first $15K wouldn't be taxable because of the annual exclusion, the other $85K wouldn't be taxed either, but would count towards her lifetime exemption and reduce her estate tax exemption by $85K.

I'm fairly certain that's how it works, but I'm not a "tax peep" nor did I stay at a Holiday Inn Express last night.
[Post edited by vthokieq at 07/15/2021 10:43AM]

(In response to this post by vt90)

Posted: 07/15/2021 at 10:39AM


+7

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Current Thread:
 
  Tax peeps - general tax question that has never made sense to me ... -- vt90 07/15/2021 10:17AM
  Unless she's going to die worth in excess of 11 million bucks, she won't -- Hokie CPA 07/15/2021 12:52PM
  $11M is the number? -- EDGEMAN 07/15/2021 1:02PM
  It was 11 million a couple of years ago... -- Hokie CPA 07/15/2021 1:04PM
  It's $11.7 million for 2021. ** -- Hokie CPA 07/15/2021 1:06PM
  As you know though, it is a constantly moving target. -- vthokieq 07/15/2021 1:18PM
  Good to know! Thanks! -- EDGEMAN 07/15/2021 1:17PM
  If over 15k to each kid she just hasto file a gift tax return. The gift -- psychobilly 07/15/2021 11:51AM
  For a $15k tax free gift, I’ll provide your answer! 😏 ** -- Hokebury 07/15/2021 11:40AM
  P.s only difference between gift and inheritance is step up on any -- Hokiehouse7 07/15/2021 11:19AM
  Not taxed...just eats into the huge estate tax exemption. Plus doubt many -- Hokiehouse7 07/15/2021 11:16AM
  SHUN ** -- darnellm 07/15/2021 11:14AM
  …the government do take a bite -- chumley 07/15/2021 11:07AM
  If she has already paid the taxes on the money that year... -- EDGEMAN 07/15/2021 10:42AM
  You sure don't want it to sound like a payment for services -- Tafkam Hokie 07/15/2021 10:49AM
  Yup ** -- vthokieq 07/15/2021 10:52AM
  Don't think that's correct. -- vthokieq 07/15/2021 10:39AM
  Yeah, that's how it was explained to us by a financial guy. ** -- reestuart 07/15/2021 10:59AM
  My understanding as well. -- Guy LeDouche 07/15/2021 10:45AM
  If you're married and both parents are alive and rich, they can each give -- Hokie CPA 07/15/2021 12:58PM
  And then they can do it again next year. -- Hokie CPA 07/15/2021 1:11PM
  Why you... -- Riverguy 07/15/2021 11:13AM
  Duffel bags of cash transfer pretty easily. ** -- hoosnowahokie 07/15/2021 10:37AM
  She could give that each year ** -- bigbadbird 07/15/2021 10:36AM
  The amount given over 15K reduces the unified credit of the giver. ** -- Cosmo 07/15/2021 10:27AM
  Yes -- FfxStationHokie 07/15/2021 10:25AM
  Gifts over 15K are not "taxed". ** -- Cosmo 07/15/2021 10:24AM

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