Why no 709 when buying or giving gift to family member

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  • Treasur2
    Member
    • Mar 2017
    • 50

    #1

    Why no 709 when buying or giving gift to family member

    ok, as a follow up to an earlier 709 question I asked today.

    If I buy my child a car for his/her birthday, graduation etc. Am I supposed to file a 709? Technically speaking? it doesnt' take much of an automobile to get over the annual exclusion.

    If not why not?
    Treasur2
  • New York Enrolled Agent
    Senior Member
    • Nov 2006
    • 1530

    #2
    I'm not sure what "technically speaking" is supposed to mean but section 6019 of the IRC requires a return to be filed when the conditions are met.

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    • TaxGuyBill
      Senior Member
      • Oct 2013
      • 2320

      #3
      I think that may get into a possibly 'gray area' of "support" of a dependent/child or "gift". I would think that at least in some cases, that might be difficult to determine which it is.

      If it is a non-support "gift", yes, a Gift Tax Return would need to be filed.

      Comment

      • Rapid Robert
        Senior Member
        • Oct 2015
        • 1982

        #4
        Originally posted by TaxGuyBill
        I think that may get into a possibly 'gray area' of "support" of a dependent/child or "gift". I would think that at least in some cases, that might be difficult to determine which it is.
        For an adult relative, where there is no legal obligation, why wouldn't it be both gift and support? I don't see where one precludes the other.

        "You make a gift if you give property (including money), or the use of or income from property, without expecting to receive something of at least equal value in return."

        As a practical matter, from what I've read, when the IRS audits gift taxes, they are primarily looking for under-valuation of property given, which is not an issue with gifts of money.
        "You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe Howard
        "That's enough! When you didn't know what you were talking about, you really had something! [to Curly]" -Moe Howard

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