2006 Gift

[GCU]

A husband and wife like to donate community to their son. I want to know how much is the deductible amount of gift for husband and wife.

[Bucky]

Do they own the community? Why would he want it. Then you have all the problems of running it, garbage, schools, police etc. Maybe put it on ebay and then give the cash to the kid! Of course no matter what they give to son they don't get a deduction. Worst case they would owe gift tax.

[rosieea]

Each can gift $12,000 to the son without having to file a gift tax return.

[OldJack]

A husband and wife like to donate community to their son. I want to know how much is the deductible amount of gift for husband and wife.

I don't know what a "community" is but I guess you are talking about real estate such as your home.

As was said you can gift as much as $12,000 to any one person without filing a gift tax return. That means you can gift $12,000 and your husband can gift $12,000 to your son without filing a gift tax return. You can actually gift upto $1,000,000 by filing a gift tax return WITHOUT paying any gift tax. However, the $1 million counts as part of your estate when you die if you have another $1 million when you die you will owe estate tax.

If you are giving more than is allowed without filing the gift tax return you should talk with someone that knows how to file gift tax returns and do estate planning.

There is zero income tax deduction for gifts by the parents and the gift is not taxable to the son.

[Unregistered]

Thanks Old Jack. I understand very well.