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

    Jul 21, 2008, 05:51 AM
    Gifting money to children w/out taxes
    How do I gift money to my children without paying taxes?
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #2

    Jul 21, 2008, 06:10 AM
    Keep your gifts under $10K annually.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #3

    Jul 21, 2008, 11:40 AM
    Actually, the annual limit is up to $12,000 per year. Plus, that is PER GIVER PER GIFTEE.

    Example: A wealthy couple wishes to start transferring some assets to their only son, who is married with five children.

    The FATHER can give $12K to his son, $12K to the son's wife, and $12K to EACH child, for a total of $84K.

    The MOTHER can do the same, transferring ANOTHER $84K.

    TOTAL TRANSFER: $168K, and NOTHING has to be reported.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #4

    Jul 21, 2008, 04:45 PM
    I vaguely remember the limit being upped, but wasn't sure. I figured someone would correct the amount, thanks.

    And yes, the limit is per person per gift, so a married couple can can each give $12K to each person.
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #5

    Jul 21, 2008, 10:45 PM
    Quote Originally Posted by Madnessmom
    How do I gift money to my children without paying taxes?
    Read more about gifts exclusion and gift tax return
    Read Your U.S. Tax Return: The U.S. Gift Tax
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