Annual Gift Exclusion

[S T]

Is it possible to make a monthly gift amount , rather than annual amount, as long as total for the year does not exceed the the $ 13,000 (current for 2010) ? And duly noted on the checks for each of the payments?

Thanks

Sandy

[dyne]

Sure, a gift can be made in any amount and at any time during the year as long as it
does not total more than $13,000.

[taxcraft]

Gifts

I know a man who only gives his kids $12500 because he is afraid that birthday and Christmas gifts will push him over the limit.

[dyne]

I have warned clients that christmas gifts, etc. are included in the $13,000. I heard of an
IRS agent who routinely asks taxpayers if they make gifts to children, etc. and did they also
give christmas gifts, etc. in addition to the $13,000 exclusion amount.

[taxmom34]

wow, i learned something from this post. i thought you could give a once a year 13,000 gift to each person, but never thought of christmas and birthday gifts would be included for a yearly total of 13,000. thanks guys

[WhiteOleander]

wow, i learned something from this post. i thought you could give a once a year 13,000 gift to each person, but never thought of christmas and birthday gifts would be included for a yearly total of 13,000. thanks guys

Yes, sometimes it never crosses the parent's mind that giving a car to their child might make a gift tax return necessary. But, it happens all the time.