I would add, that if the gift is more than $12,000 per, taxpayer files a gift tax return, but can use their lifetime exemption and not have to pay a tax. See form 709 and instructions.
Arnie
----- Original Message -----From: Robert LukeySent: 10/13/2008 6:28 PMSubject: Re: [taxchat] gift tax question
Remember that current regs state that child income might have to be included in the parents income so put as much away into some sort of IRA as possible.
On Mon, Oct 13, 2008 at 12:08 PM, lmh30188 <LoisGratton@alum.emory. > wrote:edu
I want to verify my reply to a client, though my research indicates I
have given her the correct answer. If a married couple each transfers
$12,000 in a year to their infant child's account, no gift tax return
needs to be filed, but if it exceeds $24,000 total, then a gift tax
return must be filed. Is this correct? Thanks in advance for your
replies.
--
Robert Lukey EA CPA
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