A couple gives $20,000 to their son to use as down money on a home purchase. Neither has given any other gifts this year (or any other). I believe that no tax is due because of gift splitting, but will the 709 still need to be filed? Is it filed separately or attached to their 1040? And must it be paper filed? I believe I know the answers, but as this will be my first exposure to the gift tax, I want to be sure. Thanks for your help.
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In some respects it does not need to be filed because it is under the tax fee gift threshold if both parents agree to the gift. But since one person signed the check, maybe, there is no way to lock in both parents agreed to the gift. So the gift tax should be filed.Originally posted by lovesledz View Post
Do not attach it to the 1040. It needs to be sent to a different address on paper.This post is for discussion purposes only and should be verified with other sources before actual use.
Many times I post additional info on the post, Click on "message board" for updated content. -
Here is a case of splitting a gift as if from two people. the fact it is over 13,000$ means
a gift tax return must be filed, on which the couple will check a box, something like that,
to denote same.ChEAr$,
Harlan Lunsford, EA n LAComment
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From TTB 21-29
Form 709 for consenting spouse not always required.
If only one spouse made gifts over $13,000, the consenting spouse is not
required to file Form 709 if:
• The donor spouse did not give more than $26,000
to any one person,
• The consenting spouse either made no gifts
or gave $13,000 or less to other donees, and
• All gifts were present interests.
Author’s Comment: The directions above are from the Form 709 instructions.
Regulation Section 25.6019-2 requires a return to be filed by
the consenting spouse only if the couple gave more than $26,000 to one
donee. Even if the consenting spouse gave gifts to the same donees, he
or she is not required to fi le if each donee received $26,000 or less.Comment
Comment