Non taxable gifts to family

[GeorgeM]

I have been under the impression that you can give up to $10.000 to any family member every year without having to pay and taxes on it by both parties.

My neighbor tell be different, he says it is $13,000 per year, and you can give $26,000 to your son/daughter and their spouse if the check is made out in both of their names.

Is this correct, and if so when did the law change.

Can someone direct me to the law that covers this.

Thank you and have a wonderful day.

[Lion EA]

The $10,000 has been adjusted for inflation since 1998 and is currently $13,000. The pre-2001 rules are scheduled to return beginning 2013. Gift-splitting between a donor and spouse has been around even longer. Start by reading the instructions to Form 709, then Code Sections 2501 and 2501 re domestic gifts and tax rates and their changes due to EGTRRA. Look for a good seminar on Forms 706 and 709, Estate and Gift Taxes.

[michaelmars]

I have been under the impression that you can give up to $10.000 to any family member every year without having to pay and taxes on it by both parties.

My neighbor tell be different, he says it is $13,000 per year, and you can give $26,000 to your son/daughter and their spouse if the check is made out in both of their names.

Is this correct, and if so when did the law change.

Can someone direct me to the law that covers this.

Thank you and have a wonderful day.

its not just family members, you can give a tax free gift to as many people as you desire. I can send my bank routing number to you if you wish <s>

[Lion EA]

And, remember it counts ALL gifts to that individual during the tax year. So, if you give your relative/friend/stranger $13,000 but also gave him/her birthday/holiday gifts, you'll be filing a gift tax return.