Gift Tax Return

[Bird Legs]

Would a Gift Tax Return have to be filed in this situation?
Client gives girl friend an engagement ring, value $30,000. Later on, they get married.
File or not.

Situation 2: Instead of getting married, the girlfriend backs out of getting married, but
keeps the ring.

[jainen]

Form 709 is required

>>Client gives girl friend an engagement ring, value $30,000.<<

Form 709 is required for the amount over $12000. Or $24000, if he does gift splitting with his current wife.

[Bill Tubbs]

Good one Jainen!

You crack me up!

[Roland Slugg]

Perhaps not a gift

Maybe the ring was payment for services.

[Unregistered]

They have a contract, and the ring is consideration for the contract

At time of breach of contract the ring is kept for services rendered.

Jainen, you are a funny one!

JoshInNC

[jainen]

he learned his lesson

Oh sure, he SAYS it's thirty grand. Anyone who can afford a rock like that can NOT be trusted. I'd give him a100% BS factor--the trinket only cost fifteen.

And that was retail. By the time he actually found someone to accept his lying smiles (just long enough to get the ice in her own greedy mitts, as it turned out) said bling was well-used and only worth a fraction of its original overpriced presentation, far below the the annual exclusion. Forget about it and I hope he learned his lesson!

[JG EA]

Idea

Here's a good idea. With the popularity of pre-nup agreements just let her borrow the ring until married. Then no gift tax return would be required.

[jainen]

Ya think?

"Oh my dearest darling. Please allow me the great honor of loaning you this engagement ring!"

Ya think?