Gift tax return required?

[kamckinley]

This is probably an easy question, but my brain is tired and I'm overthinking everything as a result.

Married client gave $24,000 to their adult daughter. Since the total amount is less than $28,000 and they are electing to split the gift is a gift tax return required or not? Per the IRS site, it looks like they have to file a gift tax return in order to elect gift splitting, but other articles suggest that since each spouse's amount is below the annual exclusion no gift tax return is required.

Can anyone confirm or clarify?

Thanks in advance!
Kristine

[kamckinley]

Upon further research it looks like a gift tax return is required, however, since the amount was under $28,000 only one gift tax return must be filed. If the amount was over $28,000 then both spouses would need to file a gift tax return. Do I have it right? Thanks again!

[DaveinTexas]

Correct

Also, make sure if the spouses consent to splitting gifts that both spouses sign the return.

[Gene V]

If each spouse gave $14,000 from their own account, then there would be no Gift Tax required. Is that correct?

[kamckinley]

If each spouse gave $14,000 from their own account, then there would be no Gift Tax required. Is that correct?

That's how I'm interpreting it. But in this case the gifts came from a joint account so I believe I need to file a gift tax return so they can elect gift splitting. I'm getting conflicting advice on a different forum, but according to the IRS instructions for Form 709, since they made more than $14,000 in gifts from a joint account, then they need to file a gift tax return to elect gift splitting, but since it was less than $28,000 they can file just one return instead of two (last year they made gifts of over $50,000 to their other adult child, so we definitely had to file two gift tax returns in that case).

[kamckinley]

So I'm working on this today, and after reviewing the rules AGAIN, I don't think I have to do a gift tax return after all. The reason being that the gifts were made from a joint account. In a non-community property state, the gift is considered given half by one spouse and half by the other. Since neither spouse is giving more than the annual exclusion, no gift splitting required and therefore no gift tax return required. Can anyone confirm this for me? Thanks!