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Why no 709 when buying or giving gift to family member

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    Why no 709 when buying or giving gift to family member

    ok, as a follow up to an earlier 709 question I asked today.

    If I buy my child a car for his/her birthday, graduation etc. Am I supposed to file a 709? Technically speaking? it doesnt' take much of an automobile to get over the annual exclusion.

    If not why not?
    Treasur2

    #2
    I'm not sure what "technically speaking" is supposed to mean but section 6019 of the IRC requires a return to be filed when the conditions are met.

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      #3
      I think that may get into a possibly 'gray area' of "support" of a dependent/child or "gift". I would think that at least in some cases, that might be difficult to determine which it is.

      If it is a non-support "gift", yes, a Gift Tax Return would need to be filed.

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        #4
        Originally posted by TaxGuyBill View Post
        I think that may get into a possibly 'gray area' of "support" of a dependent/child or "gift". I would think that at least in some cases, that might be difficult to determine which it is.
        For an adult relative, where there is no legal obligation, why wouldn't it be both gift and support? I don't see where one precludes the other.

        "You make a gift if you give property (including money), or the use of or income from property, without expecting to receive something of at least equal value in return."

        As a practical matter, from what I've read, when the IRS audits gift taxes, they are primarily looking for under-valuation of property given, which is not an issue with gifts of money.

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