when is gift taxiable

I added my daughter to my stock broker and bank account as joint tenant. I have over $90,000 in each. If she should withdraw more that $11,000 in a year, I would file a gift tax return for the amount she withdrew. It that correct? Abe

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Reply to
wabkygm
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You just gifted your daughter over $90K and should file a gift tax return taking the amount against your unified credit. Also, when you pass on, she missed the chance to have that half receive a stepped up basis on your passing. What was your motivation to do this? By the way, you may gift $12K/yr with no tax reporting needed. It was raised from $11K some time back. JOE

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Reply to
joetaxpayer

Just adding your daughter to your accounts is not considered a completed gift, so there is no gift tax return due at that time. If you were to give her for her own use a total of more than (currently) $12,000 during the course of the year (including withdrawals she makes with your consent), those would be considered completed gifts, and you'd be required to file a gift tax return. If you are married and not giving community property, you will still need to file a gift tax return but, the first $24,000 is gift tax free if you elect to split the gift on the return. If you give community property it's treated as coming half from each spouse, so as long as it's under $24,000 no return is required. Stu

Reply to
Stuart Bronstein

the figure is 12,000 for the total amounts of gifts during the year.

But yes, you are basically right.

-- ArtKamlet at a o l dot c o m Columbus OH K2PZH

Reply to
Arthur Kamlet

Gift tax exclusion is $12,000. So, withdrawl of $11,000 could not be an issue.

___________________________________

-----> real address on hobokeni or hobokenx

Reply to
Benjamin Yazersky CPA

snipped-for-privacy@gmail.com posted:

If you've already established her as a "joint tenant" (joint owner), you've technically made her a gift of more than $90,000 (based on your information). You must file with the IRS if your gift total in any year exceeds $12,000 ($24,000 MFJ) to any one person. Given the fact that you've already taken this action, I would advise you to consult your estate attorney or a tax adviser (CPA or EA) about the possibility of reversing this action in time to avoid the gift tax issue, or -- alternatively -- to learn the details of how you should file. Information on gift taxes, including details of the Unified Credit which might apply in your case, can be found at

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... and choose Forms and Publications ...then request Pub 950, and opt for the html version, whichwill enable you to read on-line about the details of whattaxes might be owed. In view of the fact that you've already taken the action of adding your daughter to your accounts, I strongly advise you to seek advice promptly. Bill

Reply to
Bill

I disagree. The gift isn't completed until she takes the money. (Consider if he added her so she could use his money to pay his bills while he travelled or something. No gift.) The limit is $12,000. It doubles if you or she is married (and quadruples if they both are), though information filing might be required in those cases. Seth

Reply to
Seth

If your broker account holds securities in street name, then adding your daughter as a joint tenant is not a gift. A gift will occur if and when the daughter removes securities or cash. Adding your daughter's name to your bank account may or may not trigger a gift. You must first look to state banking law to determine whether or not upon adding her name, she has received a one-half vested interest in the account. If the answer is Yes, then there is a gift at that time. If not, and you are the only contributor to the account, then there is no gift at that time. A gift takes place when the daughter removes cash.

Reply to
Alan

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