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Gift Tax Question

Regarding a split gift which requires filing Form 709 :

Are the following examples split gifts?

  1. One spouse writes a check out of his (or her) account with the permission of the other spouse to use part of their $ 13,000 exclusion .
  2. Any check from a joint checking account.

Finally once a gift is split, do all other gifts to any third party need to be split ?

Thanks Ron

Reply to
Ron
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Gift splitting is an election made by both spouses together. It makes no difference which spouse writes the check. It makes no difference whether the account upon which the check is written is joint or not.

The election is effective for all gifts made by either spouse for that tax year.

Reply to
Bill Brown

party

Bill Brown's comments are exactly right. I'd just like to add one thing:

The concept of gift splitting is that when one spouse makes a gift of his or her own funds, and that gift exceeds his personal annual limit, he (and his spouse) can choose to treat it for gift tax purposes as if it came from them both.

If the gift in fact came half from each, then no gift splitting has occurred, and no gift tax return is necessary if both spouses' annual exemptions are not exceeded.

For example in community property states funds will generally belong to both spouses equally. In those states with joint funds no gift splitting takes place.

Reply to
Stuart A. Bronstein

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