The first $11K gifted to you from each parent qualifies for the annual gift exclusion. Your parents can combine their individual annual gift exclusions to give you up to $22K tax free per year.
No need to split the gift between calendar years, or write separate checks. Keep it simple.
Gift tax, if any is due, is paid by the giver. The recipient of the gift does not incur any taxable liability from a gift.[ Edited by DaveT on Date 12/05/2003 ]
A Gift Tax Return (Form 709) is not required until the total amount of all gifts given to an individual during the year exceeds the annual gift exclusion.
In your case, if your parents are filing a joint return, they would file a Form 709 only if they gave you more than $22K during the year.
I would recommend they gift you 10K this month and another 10K in Jan.
Then I BELIEVE neither you or them would pay a gift tax.
Others more knowledgable in this area here can give you details.
You can receive $10,000 from each parent today.
Just have them write seperate checks and on each check write 2003 gift from mom/dad
The first $11K gifted to you from each parent qualifies for the annual gift exclusion. Your parents can combine their individual annual gift exclusions to give you up to $22K tax free per year.
No need to split the gift between calendar years, or write separate checks. Keep it simple.
Gift tax, if any is due, is paid by the giver. The recipient of the gift does not incur any taxable liability from a gift.[ Edited by DaveT on Date 12/05/2003 ]
Followup to my previous post.
A Gift Tax Return (Form 709) is not required until the total amount of all gifts given to an individual during the year exceeds the annual gift exclusion.
In your case, if your parents are filing a joint return, they would file a Form 709 only if they gave you more than $22K during the year.
Thanks for all the wonderful information. This relieves a lot of headaches for me.