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Good Day.

[sorry, can't find an easy way to search this board specifically...]

I know that the gift giving is annual, which I'd assume is Jan 01 -- Dec 31. But specifically, when does it count? Example:

I gift via check to child on Dec 30, 2013. They don't cash it until Jan 5, 2014. What year does this gift technically fall under?

Thanks.
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I gift via check to child on Dec 30, 2013. They don't cash it until Jan 5, 2014. What year does this gift technically fall under?
I believe when it is no longer in your control is when it counts.
So if you write the check on Dec. 30th, and don't hand it (or mail it) to your kid until Jan 4, it's really a January gift.

If you're thinking of back-dating a check, remember that it'd be easy for the IRS to ask to see the checks that are right before and right after and see what dates are written on them.
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That would make sense. Thanks.

And, no, not back dating, but with the end of the year coming up so quick...will actually give check on Dec 21, "but kids these days." One would hope that they can mobile deposit in a timely fashion
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And, no, not back dating, but with the end of the year coming up so quick...will actually give check on Dec 21, "but kids these days." One would hope that they can mobile deposit in a timely fashion

Heh. If they are anything like my son, they will just take a picture of it with their phone and transmit the deposit to the bank that way.

IP,
thinking "kids these days" don't usually let a check sit around, unless the writing on the check is not clear enough for a phone deposit
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I gift via check to child on Dec 30, 2013. They don't cash it until Jan 5, 2014. What year does this gift technically fall under?
I believe when it is no longer in your control is when it counts.
So if you write the check on Dec. 30th, and don't hand it (or mail it) to your kid until Jan 4, it's really a January gift.


Rignt concept. Bad interpretation. Both situations above are 2014 gifts. A gift is completed when the gifter can no longer affect the gift. This is dependent on state law but usually means after the check has cleared. See http://www.thefreelibrary.com/Gift+was+completed+when+check+... for one case that went to Tax Court.

Ira
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Rignt concept. Bad interpretation. Both situations above are 2014 gifts. A gift is completed when the gifter can no longer affect the gift. This is dependent on state law but usually means after the check has cleared. See http://www.thefreelibrary.com/Gift+was+completed+when+check+...... for one case that went to Tax Court.


What I read is that the tax court found for Metzger and said that the IRS didn't get to claim that it wasn't a gift until after the check had cleared. The tax court said that the date on the check applied because the donor intended to make a gift, the donor presented the check to the recipient in a reasonable time, and the delivery was unconditional.
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Thanks for that link (nice to read a legal brief in plain english).

I too read that the Tax Court superseded the state law. Anyway, I hope that it's a moot point with a quick cellphone deposit, and barring any buses crossing my path, I don't intend to pass next year.
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