Gift to Corporation

[Nashville]

Parents are beginning to give their fortune away. They are aware father can give $13000 each to son and his wife, and mother can give $13000 each to son and his wife for a total of $52,000.

However father gave $25,000 to son's corporation. Mother also gave $25,000 to son's corporation knowing they were bounded by the $52,000 limit.

The problem is the corporation is owned 100% by the son, and son's wife owns 0%. These seemed to be totally deemed to be gifts to the son only.

The way I see it, father has a $12,000 reportable gift to son, and mother has same.
Opinions??

[Lion]

Gifts

Can they give $26,000 to corporation and $26,000 to son and $26,000 to daughter? That would mean they have a net $26,000 gift tax return to corporation and still gifts available to son and daughter.

[Nashville]

It's a Done Deal

Lion thanks for your comment, but you are offering tax planning ideas. The opportunity for tax planning is over, because the above transaction is already done.

[Lion]

Middle

Then, just take the middle section. They each can give to any person, a corporation being a person for tax purposes. So, they can give $26,000 and gave $52,000 so have gift tax returns to file, yes?