The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies

URL:  http://boards.fool.com/detailed-explanation-omitted-so-back-to-my-tax-30879141.aspx

Subject:  Re: 529 Plans and Gift Taxes Date:  9/20/2013  8:30 AM
Author:  irasmilo Number:  119171 of 121435

[detailed explanation omitted]

So back to my tax questions (though I doubt any of the foregoign changes the response).

If "contributions to section 529 plans are considered a completed gift of a present interest and so are excluded from the donor's gross estate" even if account is owned by the donor, is the later transfer of wonership also a taxable event?

If yes, as to the entire account value or only the increase in value above the amount originally gifted?

If the entire account value, then the same 14k is being counted twice for gift tax purposes.


I still believe the transfer of the account is a taxable (gift tax) event in its entirety due to the transfer of the rights associated with ownership, but I readily admit that my coclusion is based on logic (always dangerous in taxes) and not any specific experience or review of adjudicated precedents.

Ira
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us