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Private gifts are not taxed until it is over $12 million dollars (the estate tax limit). The IRS does require you to report it if it goes over $16k from one in
by positr0n 4y ago
Private gifts are not taxed until it is over $12 million dollars (the estate tax limit).
The IRS does require you to report it if it goes over $16k from one individual to another. This is solely to keep track of that $12M lifetime gift limit.
Totally reasonable IMO unless you don't believe in inheritance taxes at all.
so you could do $48k from a couple to their child and child's spouse.
- FpUser 4y agoUnderstood and yes it does sound reasonable. I still cringe a bit.
- eddsh1994 4y agoIn several European countries this is a trick to get around inheritance tax so, if you die several years after the gift, it's taxed as per inheritance.
- sebzim4500 4y agoYeah. In the UK it is a common trick to back date a gift to your children 7 years so you don't have to pay inheritance tax on it. Sometimes it needs to preparation, you need some sort of evidence that the gift happened 7 years before death, but faking that evidence is far from impossible.