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Tennessee Resident:

In the process of receiving 100,000 in one calendar year what are the tax implications to the giver and receiver? What is the best way to disburse? Limited amount each calendar year?

What is the best strategy it can be given in one calendar year and the next. Married yes and as a gift to children.
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In the process of receiving 100,000 in one calendar year what are the tax implications to the giver and receiver? What is the best way to disburse? Limited amount each calendar year?

What is the best strategy it can be given in one calendar year and the next. Married yes and as a gift to children.


Is this for college expenses? If so, giver can pay school directly without it being taxed as a gift.

Depending on children's ages, think hard about how to control the money until they can handle their own finances.

Just food for thought. Clearly I don't know the situation.

IP
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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.

--Peter
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