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    Gift to Corporation

    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??

    #2
    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.

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      #3
      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.

      Comment


        #4
        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?

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