Message Font: Serif | Sans-Serif
No. of Recommendations: 1
Any gift of more than $14,000 from one person to another during a calendar year requires the giver to file a gift tax return. There is no tax on the gift until lifetime gifts exceed about $5 million.

So a father could give $14,000 to their child, another $14,000 to their child's spouse, and another $14,000 to their grandchild without having to file a gift tax return. And then the mother could make the same gifts and also not need to file a gift tax return.

That $14,000 includes all gifts during a calendar year. So if there is a gift of exactly $14,000 and then another gift of a $20 shirt for a birthday, the $14,000 threshold is now exceeded and a gift tax return is required.

There is no impact on income taxes. The giver does not get a tax deduction for the gift and the recipient does not have to pay income tax on the gift.

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.