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I understand that the IRS will allow you to give away or "gift" $10,000 a year ($20,000) if husband and wife to a relative or friend.

Nope - you can gift all you want to in any given year. 10k and under is the amount which is allowable without creating any potential future estate tax ramifications. IOW - stay under 10k per individual and it wont screw up your kids inheritance when you die.

However, the real question is: Is this gift fully tax deductable on your tax return?
Nope - none at all - its a gift and doesnt affect your taxes unless you consider the reduction in current income due to the 10k amount not earning any interest/dividends/etc.

if your gift is to a qualified charitable organization then you do get a tax deduction on schedule A

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