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My parents gave us some money last year. It was more than the $13K gift allowance that would avoid taxes. But my understanding is that it's $13K that EACH person in a marriage can give to EACH person. Thus for my parents tax return (which I'm doing for them) I can divide the amount they gave us by FOUR.

In other words, my mother can give me up to $13K and my wife up to $13K, and my father can do likewise. So it's really $52K that they could give us without having to report gifts on their tax return.

You're right about the concept, which is called gift splitting. You're thinking about the wrong return. Take a look at Form 709 and its instructions to see if they have to file anything to elect gift splitting.

Rule Your Retirement Home Fool
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