Can someone tell me the limit for family gifts in 2012? I know it was $13,000 per individual in 2011 but I am not certain if it has changed for 2012.
Thanks in advance.
John Baker
Can someone tell me the limit for family gifts in 2012? I know it was $13,000 per individual in 2011 but I am not certain if it has changed for 2012.
Thanks in advance.
John Baker
2 seconds of googling led me to this:
Last week the IRS issued Rev. Proc. 2011-52, which, among other things, announced that the 2012 annual gifting exclusion amount will remain at $13,000 per gift to a non-spouse
No change.
Thanks.
I have not hit this situation before, and want to be certain I get it right, so let me ask one more question. I understand that from our joint account my wife and I can give $26,000 in a year to my son without any tax consequences. Can we ALSO give $26,000 to his wife (or put another way $52,000 to them as a couple)?
You help is much appreciated.
John Baker
Yes. But be aware that when you write those two checks from your joint account, one of you is obligated to file Form 709 (Gift Tax Return) and announce your intention to split gifts. The other spouse then signs on the proper line giving his/her consent. See the instructions for Form 709.
Not needed if done by writing four checks, each for $13k, from separate accounts. ;-)
Technically it's not about which account the money comes from, but whose money it is. If marital property is considered owned half by each spouse, as in community property states, they can write one check for $26,000 and not have to file a 709.
But if the money is considered as owned more by one spouse than another, they have to file a 709 and elect to split the gift.
___ Stu
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