Hello,
Wish to help a family member out with a "gift".
Is the gift considered to be made by the IRS per the date on the check, or when actually cashed by the individual ? Or,...?
Happy Holidays,
Thanks, Bob
"Gift" Effective Date Of ?
Dec 25, 2012
4 Replies
How are you physically giving this check? Mailing it? Handing it to them? Slipping it under the door?
I assume you are asking this in connection to your gift tax return?
And that you understand a gift to a family member is not a tax deduction?
Not when cashed; if the recipient waits for a while, that doesn't matter.
What if it's mailed 12/31 and received 1/3?
What if it's handed over in person at 11:50 PM on 12/31, and can't be cashed in 2012? (E.g. the recipient can't physically get it to a bank in 10 minutes.) What if it's handed over in person at 11:00 PM on
12/31, and recipient could (sort of) cash it in 2012 (can get to a branch that allows "cashing checks" treated as deposit/withdrawal providing sufficient cleared funds are present in the account)?Seth
You're confusing a charitable contribution with a gift. Charitable contributions are "dated" when given/postmarked/etc. Gifts are "dated" when irretrievably received.
Ira Smilovitz
contributions are "dated" when given/postmarked/etc. Gifts are "dated" when irretrievably received.
Ira - I may be making this mistake as well. Will the charity naturally follow the postmark dating their letter? If not, will a January 5th acknowledgement letter pass audit if deducted in prior year?
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