Tax Law (Questions About Taxes)/gift tax


Hi John,
I have a granddaughter that has been struggling financially since her lay off I yr. ago.
I have been paying her monthly rental payments of $1000. /mo. for the past 8 months.
I know nothing about the Gift tax rules, etc. & wonder if I could take advantage of this & use the tax exempt on my yearly  Fed income tax ?
Would appreciate any info you could offer me to understand this.
Thank you.


Thanks for your question.

The gift tax and the income tax are two unrelated taxes. You do not get a deduction on your income tax return for a gift. Similarly, the recipient does not report the gift as income.

The gift tax has an annual exemption amount of $14,000 per donee. If your gifts to a person is less than this amount, no gift tax return (form 709) is required. If you exceed the 14,000 amount, a gift tax return must be filed but no tax is due until you use up your lifetime exemption,currently around $5,400,000.

Hope this helps.

John Stancil, CPA

Tax Law (Questions About Taxes)

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John Stancil, CPA


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 am Professor Emeritus at Florida Southern 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 CPA practice, specializing in tax, for over 35 years. I am a member of the National Association of Tax Professionals, The Florida Insititute of CPA's, The NCPE Fellowship. In addition I am a Certified Mentor for SCORE. Visit my website at I also offer seminars and consultations to churches and clergy on their tax issues at Also visit my blog, I am listed on Tax Connections at Prepare and file your own taxes at


I hold a doctorate in Accounting, and am a CPA. My certifications of CIA, CFM, and CMA are inactive. 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 37 years and have taught accounting and tax at the college level for over 35 years.

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The CPA Journal, Florida CPA Today, Green Consumer, Green Business, Global Sustainability as a Business Imperative, Palmetto Review, NATP TaxPro Quarterly, Mustang Journal of Finance and Accounting.

DBA University of Memphis MBA University of Georgia BS in Accounting Mars Hill University

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