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Member
Group: Forum Members
Last Login: 7/28/2009 9:49:02 AM
Posts: 9,
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| Grandparents gift $500,000 to grandchild and his wife to buy house in 2008. Grandmother has been in bad health for years. I was going to file only one 709 for the grandfather, and have it so that the grandmother gifted $12,000 each to kids, and grandfather gifted 476,000, of which $452,000 would be subject to gift tax. (This would be the first such gift so no tax due) I thought this would be wise as then if grandmother died, a full $3.5M could go to bypass trust. If the gift was split, then this amount would have to be reduced by $226,000. This assumes that in the future the exemption amount will go up above $3.5M, for when Grandfather dies. Is this thinking correct, and can this be done in light of CA community property rules.Thank you very much
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Power Member
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Last Login: 1/6/2010 6:00:00 PM
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If the gift was community property, I am not aware of an option to report it on one return and not the other. This contrasts with the option to split separate property gifts between spouses.
John Jacobson
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Member
Group: Forum Members
Last Login: 12/1/2009 12:47:02 PM
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i guess if they really want to do this (not sure that i would), they could first transmute a portion of community property to separate property- might be reportable, but would be fully exempt between spouses. so first a gift from one spouse to the other then the subject gift...
again, not sure that i would do this...
John Jacobson (7/27/2009)
If the gift was community property, I am not aware of an option to report it on one return and not the other. This contrasts with the option to split separate property gifts between spouses.
IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code, or (ii) promoting, marketing or recommending to another party any matters addressed herein. |
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