Question

About gift tax limit $17000/person/year, if I gift my brother couple, $1415 monthly=$16980 yearly/person, no tax issues? Can I send $2830/month to their joint account?

Forum|Forum|1 year ago
July 14, 2024
3 replies
0 views

I am looking for gifting my brother without tax issues to help buy his house for my side as well as his side. Is there a better way to save/send money without tax issues? Thank you.

TurboTax Deluxe Online

X

xmasbaby0

Is your brother married? You mentioned a joint account. You can gift up to $17,000 to each spouse without the need to file a Form 709.

Gifts given to family members, friends or other individuals are not deductible. Gifts received are not taxable to the person who received the gift, and are not entered on a tax return.

If your gift exceeds the yearly limit ($17,000 per individual) imposed by the gift tax rules, then you will need to complete a Form 709 gift tax form and send it to the IRS, although it is very unlikely that you will owe any tax. In 2024 that yearly limit will increase to $18,000.

TurboTax does not support Form 709. It is not an income tax form and would not be included as part of an income tax return.

Here is a link to the form:

https://www.irs.gov/pub/irs-pdf/f709.pdf

https://turbotax.intuit.com/tax-tips/estates/the-gift-tax-made-simple/L5tGWVC8N

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

M-MTax

For 2024 the exclusion is $18,000 per person per donee. $36,000 for two donees for 2024.

P

pk12_2

@lyihjl-hotmail-c , while agree with my colleagues @xmasbaby0 and @M-MTax on the gift tax info. I don't understand your statements :

(a) " buy his house for my side as well as his side" -- are you trying to buy a property together or what ? Is this a loan to your brother or what ?

(b) "without tax issues" ---- generally all the monies you have after paying taxes, i.e. post tax monies -- is your money. Whether you gift or loan there is no tax on it. Even if you gift above the free per year/ per donee amount it does not attract any tax. The reason you need to file a gift tax form is for amounts greater than the free limit is accumulated throughout your life for purposes of Estate/Gift tax reconciliation upon your demise i.e. against the lifetime tax limit ( of 1 million , I think ). Unless you are super rich, most of us will never get there.

Hope that settles your query.