Dad pays $50,000 for a lavish wedding for his daughter and new husband.
Is a gift tax return required??
Is a gift tax return required??
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Did he give her cash? Or did he help plan it and pay the bills? What was the purpose of the lavishness? To show off to his family & friends?
Is he still married to the daughter's mom? $50k split four ways is only $12,500, well below the gift tax threshold."Taxation is the price we pay for failing to build a civilized society." ~ Mark Skousen -
Anarchy - for purposes of discussion, assume he paid directly to the wedding planner, not to his daughter. I guess we must assume he is no longer married to the mom. The entire impact of the question was to present a set of facts which assume the dollar amount is over the $18K gift exclusion.Comment
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Did he help plan it? What was the purpose of the lavishness?
Google it and the first 10 hits say it's a gift subject to tax. I think an argument can be made that it's not depending on the purpose of the party."Taxation is the price we pay for failing to build a civilized society." ~ Mark SkousenComment
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Just a thought ... was it all paid for the wedding, or was a large part paid for the reception?
Assuming a large part was for the reception, some of the "gift" could be viewed as for all of the guests, rather than the wedding couple. It is the guests that benefited from the meal and drinks, not the wedding couple.Comment
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The father/parents of the bride hosted a wedding/reception/party for friends and family to celebrate a special occasion. It's a personal expense, not a gift to the attendees. But, don't trust me, because our family has had well-budgeted weddings that wouldn't trigger gift tax returns!
Now, if the dad handed $50,000 to his daughter who's no longer his dependent, then that's a gift that requires a gift tax return.Comment
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