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    ustwo's Avatar
    ustwo Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Jun 27, 2008, 07:17 PM
    Gifts of Money to family
    Are there any limitations to giving gifts of money to our children? And what are the legalities involved in doing so? We reside in Australia
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #2

    Jun 27, 2008, 08:24 PM
    If you are a U.S. citizen or resident, then yes, the U.S. has gift tax.
    Read this:
    Your U.S. Tax Return: The U.S. Gift Tax
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #3

    Jun 30, 2008, 09:51 AM
    This assumes you are U.S. citizens residing in Australia.

    You can transfer up to (I believe) $12,000 each year with no tax consequences or reporting requirement.

    That is $12,000 per parent to each child, so a couple could give $24,000 to each child. If you get the grandparents involved, it could be as much as $72,000 per child.

    If you exceed this limit. You have to file a gift tax return, but you can avoid PAYING a gift tax if you use some of the Unified Credit. This is the credit that your estate uses to exempt the first $2 MILLION of the state from estate taxes.

    If you are Australian citizens, you need to get tax advice from a local Australian tax professional.
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