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Financial Planning / Tax Strategies


Subject:  Re: 529 Plans and Gift Taxes Date:  9/20/2013  12:52 PM
Author:  JAFO31 Number:  119172 of 127613


<<<[detailed explanation omitted]

So back to my tax questions (though I doubt any of the foregoing 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."

Thanks, Ira. I suspected that would be the likely response.

Unless anyone reasonably beleives otherwise or can provide citations to the contrary, I will act accordingly and use the multi-year gifts to both spouses recipient to accomplish the transfer in 2014 and 2015.

Regards, JAFO
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