UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev Thread | Next Thread
Author: Ringfinger Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75381  
Subject: $10,000 Gift Date: 10/17/2011 11:29 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
How does one accomplish this? What is the procedure? My MIL would like to gift $10,000 each to some individuals.

Once that person has it, I assume any investment gains they will be responsible for as the cost basis is at gift date?
Print the post Back To Top
Author: GuildWarsQueen Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 69666 of 75381
Subject: Re: $10,000 Gift Date: 10/17/2011 1:58 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 2
Is this the same person from the previous post?
1. I need to invest her money to ensure minimal risk of principal.

2. We are looking at like $65,000. This is it, all she has, only SS comes in monthly and a small pension.

3. She needs a $700 payout monthly, for expenses she has.


I'd say she can't afford to make the gifts and should keep it for her own needs.

Print the post Back To Top
Author: Ringfinger Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 69667 of 75381
Subject: Re: $10,000 Gift Date: 10/17/2011 2:05 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Nope, I meant GMIL (wife's granny) And yes, MIL will get a gift.

Print the post Back To Top
Author: JLC Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 69668 of 75381
Subject: Re: $10,000 Gift Date: 10/17/2011 4:01 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 1
This might help a little.

http://www.marketwatch.com/story/how-to-avoid-the-irs-gift-t...
http://money.cnn.com/magazines/moneymag/money101/lesson21/in...

If its cash, its as simple as writing a check or doling out the Benjamins. If its some other asset (stocks, property, etc.) its a matter of transferring deed/ownership/etc.

The gift tax limit is now $13,000 per person. However, if MIL AND spouse want to give more to a person, they can each give 13k so total is 26k. Or if this is for a person in college a one time gift of 65k (130k with spouse) is treated as 13k for 5 years.

JLC

Print the post Back To Top
Author: ptheland Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 69671 of 75381
Subject: Re: $10,000 Gift Date: 10/17/2011 4:28 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 4
Once that person has it, I assume any investment gains they will be responsible for as the cost basis is at gift date?

That is not correct.

If the gift is something other than cash, the donor's tax basis will transfer to the recipient. So the recipient takes over the basis from the donor, and will be responsible for paying the tax on any gain while the donor held the property.

However, if the FMV of the gift is less than the basis (i.e., the donor suffered a loss before donating), then the FMV becomes the basis for purposes of calculating a loss. For purposes of calculating gains, the recipient's basis will still be the donor's basis. The idea here is that you can't transfer a loss on a property by making a gift of the property.

Choosing to make a gift of highly appreciated or depreciated property is something that must be done carefully.

In any case, the gift tax issues (not income tax, but gift tax) are all based on the FMV of the property.

--Peter

Print the post Back To Top
Author: Ringfinger Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 69672 of 75381
Subject: Re: $10,000 Gift Date: 10/17/2011 7:11 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Thanks, it will be cash so no worries in basis.

Print the post Back To Top
UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev Thread | Next Thread
Advertisement