So for 2025 the gift can be up to $19k and as the giver, I don’t have to file any form, correct? Nor does the recipient have to file any form or claim the gift with IRS, correct? Now if (as the giver) I wish to gift $25k…that means I went over the exclusion by 6k. So would I have to pay taxes (as the giver) on 6K? Or just have to file a form advising IRS that I gave 6k? Your answer would be greatly appreciated.
Can I gift the max dollar amount for that year to the "same person" year after year (for the next 20 years) with out filing a Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return?
You can Gift someone the 18K every year without even having to report anything. Once you go over the threshold you have to fill out the form. Does not mean you have to pay taxes on it but you have to report it up to a limit of 13.6 million dollars Anything over the 13.6 million dollars is taxable. , but that can interfere with medicare and other federal benefits which makes perfect sense. That is huge amount of money that is tax free. Won't affect much people unless your like mega millionaire or billionaire. Those guys do trusts and put conditions to the money. That is what he meant with loosing control. Im more worried about the damn government taking your hard earned cash.
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So for 2025 the gift can be up to $19k and as the giver, I don’t have to file any form, correct? Nor does the recipient have to file any form or claim the gift with IRS, correct? Now if (as the giver) I wish to gift $25k…that means I went over the exclusion by 6k. So would I have to pay taxes (as the giver) on 6K? Or just have to file a form advising IRS that I gave 6k? Your answer would be greatly appreciated.
Can I gift the max dollar amount for that year to the "same person" year after year (for the next 20 years) with out filing a Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return?
Correct, you can gift the annual exemption, without it effecting anything else.
You can Gift someone the 18K every year without even having to report anything. Once you go over the threshold you have to fill out the form. Does not mean you have to pay taxes on it but you have to report it up to a limit of 13.6 million dollars Anything over the 13.6 million dollars is taxable. , but that can interfere with medicare and other federal benefits which makes perfect sense. That is huge amount of money that is tax free. Won't affect much people unless your like mega millionaire or billionaire. Those guys do trusts and put conditions to the money. That is what he meant with loosing control. Im more worried about the damn government taking your hard earned cash.
Let's say I give my mom 18 thousand. But now I want to pay for her groceries monthly throughout the year. Do groceries count towards the gift tax?
Yes, if they are benefiting her, that would be a gift.
Can each of my parents give me 15000 each so they don't have to be taxed
This year 18k