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A couple questions about avoiding gift tax.

My wife and I can each give $14,000 to each of our 2 sons, so a total of $56,000. We have individual investment accounts, but a joint checking account. Can I transfer $56,000 from my investment account and then write each son a $28,000 check from the joint account, or must $28,000 come from each investment account? I can't imagine the IRS would put a lot of effort into this, but like to do things properly regardless.

Also, it is for gifts in a calendar year, or is it before April 15 like an IRA contribution? (it IS before April 15th for a IRA contribution, isn't it?)

Thanks much.

Reply to
Troubled
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It really depends on who each dollar "belongs" to. If you live in a community property state so that the entire gift will be considered community property, you can just make the gift out of one account and it's done.

However if you are not giving community and the money doesn't come equally from both of you, you can still qualify for the exemption. But you will have to file a gift tax return disclosing the gifts, and elect gift splitting on the form

The gift tax exemption is based on the donor's tax year - generally the calendar year.

Reply to
Stuart A. Bronstein

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