Gift Tax question

May 29, 2012 2 Replies

Situation:



Parents give $12,500 each to their daughter in 2012 for purpose of buying a house with her husband. Daughter gets late notice that the money is due, but can't get into her account in time. Parents go into their own account and get $25,000 from their own account, loan it to their daughter for a day, then get it back. Any need for a gift tax return in this instance?


I'd say not, but warn that they should keep a paper trail so it's clear they were under the gift limit in 2012.

No, as any interest for one day that the parents may have forgiven (a gift) would be too small to drive the number to the annual limit.

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