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Tax Law (Questions About Taxes)/Gifting
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Question
My wife and I wish to gift $80,000 to 2 separate(40k ea) families. One is a single nephew and the other family is a married niece with 2 children. How can we divide that up? I think we need to make 2 payments to the single individual in separate tax years in order to avoid penalties. Is this assumption correct. Thank you.
Richard,
Thanks for your question.
You are allowed to give up to $13,000 per year to an unlimited number of persons. So is your wife. So you can give one person up to $26,000 per year without gift tax consequences. To avoid filing a return, break it into two or more years.
There is an additional lifetime exclusion of $1,000,000 that each person has. However, if you use up any of this a return must be filed.
Hope this helps.
John Stancil, CPA
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John Stancil, CPA
Expertise
I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I teach tax and accounting at a small church-related college. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a part time tax practice for over 35 years. I am a member of the AICPA, National Association of Tax Professionals, and the Institute of Management Accountants. Visit my website at www.johnstancilcpa.com. Also visit my blog, www.thetaxdocspot.com. Prepare and file your own taxes at www.1040stancilcpa.com
Experience
I hold a doctorate in Accounting, and four professional certifications: CPA, CMA, CGMA, and CFM. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I have operated a CPA firm for over 30 years and have taught accounting and tax at the college level for over 30 years.
Organizations
AICPA, FICPA, IMA, NATP
Publications
The CPA Journal, Florida CPA Today, Green Consumer, Green Business, Global Sustainability as a Business Imperative, Palmetto Review, NATP TaxPro Quarterly.
Education/Credentials
DBA University of Memphis
MBA University of Georgia
BS in Accounting Mars Hill College
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