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tax on gifts from family members?

50K views 11 replies 9 participants last post by  Brian Weatherdon CFP 
#1 ·
i was looking through the 2010 tax guide an thought of an interesting question.

what are some (legal) ways to avoid being taxed on a monetary gift between family members?

for instance, if a husband gives a wife some amount of money, or if a parent gives to an child (both under and over 18 years)

i know there is an exemption for small gifts, but let's say it's tens of thousands of dollars?
 
#3 ·
...unless you are thinking about the attribution rules.

If you gift $$ to a relative (or friend) who spends it on something, then there is no tax.

If you gift $$ to a spouse or a dependent under 18, and that person invests the money, then the interest/dividends are attributed back to you; you report it as income and pay the appropriate tax.

If you gift $$ to a relative over 18 (not a spouse) or a friend, then the interest/dividends are not attributed back to you; the individual pays the taxes on the investment income.
 
#8 ·
Quesion about Cash Gift

Hi, everyone

I have a question here about money gift.

I have graduated from university for almost 2 years, but I have managed to save every month start years ago. And I'm planning to buy a small condo anytime soon. My parents are very kind to offer to help me with a large down payment, so I can save on the interest. I know bank will ask they to sign the cash gift form. And my parents live oversea.

I wonder if I will have to pay tax on it. Or is there a limit on up to how much I don't need to pay tax.

I have heard comments

Thank you, :)
 
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