How much money can you gift without taxes?

[WinterDeere]

One of the exemptions is that the gift beyond the $19K limit can essentially be a loan against the estate. As long as the estate is less than $14M, or whatever it is when the person passes on, then one is OK. Although there may still be some state taxes owed.

If true, I'm assuming there would be some other form to file alongside the #709 gift tax form?

#709 is only needed in years where you cannot break the total gift down below the $19k per giver per receipient threshold.

 

[RSKY]

One of the exemptions is that the gift beyond the $19K limit can essentially be a loan against the estate. As long as the estate is less than $14M, or whatever it is when the person passes on, then one is OK. Although there may still be some state taxes owed.

There is a letter typed up and put in our bank safe deposit box stating that when our two daughters divide up our estate one gets the amount we are gifting to her deducted from her share. This may have no legal standing but the daughter insisted on it. In the past when one of the two needed some help we gave the same amount to the other one. But the youngest and her spouse now have increased their income to the point they will not need any help from us again. They are also setting money back for their (early) retirement. The oldest daughter's husband had his employer close the shop he had worked at for years. He had attended every training class offered, could do any job they had, and looked forward to retiring from that company. They gave him a choice that included a big raise to move across the country to another shop but they didn't want to move. So he lost his job. Took him a few years to recover but he now has been promoted several times and takes all the overtime he can get. The initial request from my daughter was how to go about taking money out of his 401K. That is their retirement and I will not allow that while I am able to supply cash to tide them through a rough patch. Thus we are gifting them money.


RSKY

 

[masseyrider]

I don't gift anything.
It's a personal loan. I just didn't get paid back.
Poor judgement on my part.

 

[WinterDeere]

There is a letter typed up and put in our bank safe deposit box stating that when our two daughters divide up our estate one gets the amount we are gifting to her deducted from her share. This may have no legal standing but the daughter insisted on it. In the past when one of the two needed some help we gave the same amount to the other one. But the youngest and her spouse now have increased their income to the point they will not need any help from us again. They are also setting money back for their (early) retirement. The oldest daughter's husband had his employer close the shop he had worked at for years. He had attended every training class offered, could do any job they had, and looked forward to retiring from that company. They gave him a choice that included a big raise to move across the country to another shop but they didn't want to move. So he lost his job. Took him a few years to recover but he now has been promoted several times and takes all the overtime he can get. The initial request from my daughter was how to go about taking money out of his 401K. That is their retirement and I will not allow that while I am able to supply cash to tide them through a rough patch. Thus we are gifting them money.


RSKY

It’s good you’re fortunate enough to be able to help them. And always better to move as much as you can while you’re still on this side of the grass, to avoid inheritance taxes.

And pay attention next time you vote, as this has been a big part of the presidential platforms the last several elections. One candidate above all others, was REALLY trying to lower the threshold amounts where inheritance taxes skip up to 50% and 60%, to the point where every successful shop owner or working professional might be affected.

Put otherwise, no matter how much I might dislike the opposition, they will always get my vote over another who wants to take the money I have socked away for my kids and grandkids.