[Anonymous]

On Ninja notes page 48, it says you can exclude $14,000 donated to a spouse from gift tax. But I’m pretty sure I read somewhere else that there is no limit on gifts donated to a spouse. Does anyone know where to reconcile the difference?

[Vienna]

I think what the Ninja Notes are saying is the following:

If taxpayers are married filing jointly, each spouse is entitled to a $14,000 exclusion. That exclusion relates to “outside parties” not the other spouse (e.g. husband gives best friend a gift, and wife gives nephew a gift). The unlimited marital deduction is what you are thinking about (e.g. wife gives husband a gift). There is no limit on those gifts.

Hope that helps.

[Vienna]

I think what the Ninja Notes are saying is the following:

If taxpayers are married filing jointly, each spouse is entitled to a $14,000 exclusion. That exclusion relates to “outside parties” not the other spouse (e.g. husband gives best friend a gift, and wife gives nephew a gift). The unlimited marital deduction is what you are thinking about (e.g. wife gives husband a gift). There is no limit on those gifts.

Hope that helps.

[Anonymous]

Yup that really helped. Thanks!

[Anonymous]

Yup that really helped. Thanks!

[gt5717b]

Sounds like gift-splitting. If I gift $28,000 to a third party, I can elect to split the gift with my wife, taking advantage of both of our $14,000 gift exclusions.

REG - 89
FAR - 84
AUD - 73, 86
BEC - 89

GA Licensed CPA

[gt5717b]

Sounds like gift-splitting. If I gift $28,000 to a third party, I can elect to split the gift with my wife, taking advantage of both of our $14,000 gift exclusions.

REG - 89
FAR - 84
AUD - 73, 86
BEC - 89

GA Licensed CPA

[Anonymous]

But just to be safe, is the $14,000 per spouse per year or is it for the entire lifetime of the spouse?

[Anonymous]

But just to be safe, is the $14,000 per spouse per year or is it for the entire lifetime of the spouse?

[gt5717b]

The annual gift exclusion is currently $14,000 per donee.

Suppose you had 5 kids, you could give away $70,000/year and exclude the entire amount (5 x $14,000). When you add in gift-splitting with a spouse, that amount could be as much as $140,000/year (5 x $14,000 x 2).

There is also a lifetime amount that can absorb any gifts that exceed the gift exclusion thresholds (i.e., if you give someone $15,000 this year, $14,000 is excluded and the extra $1,000 goes against your lifetime limit). It's been over a year since I took REG and I'm sure the lifetime amounts have changed, but that's the general idea, I believe.

REG - 89
FAR - 84
AUD - 73, 86
BEC - 89

GA Licensed CPA

[gt5717b]

The annual gift exclusion is currently $14,000 per donee.

Suppose you had 5 kids, you could give away $70,000/year and exclude the entire amount (5 x $14,000). When you add in gift-splitting with a spouse, that amount could be as much as $140,000/year (5 x $14,000 x 2).

There is also a lifetime amount that can absorb any gifts that exceed the gift exclusion thresholds (i.e., if you give someone $15,000 this year, $14,000 is excluded and the extra $1,000 goes against your lifetime limit). It's been over a year since I took REG and I'm sure the lifetime amounts have changed, but that's the general idea, I believe.

REG - 89
FAR - 84
AUD - 73, 86
BEC - 89

GA Licensed CPA

[Neowarcloud]

$14,000 annually per donee

$5,250,000 gifting and estate exemption

REG 8/12 - passed 79
BEC 7/13 - passed 84
AUD 8/13 - passed 83
FAR 11/13 - Passed 83

Now off to a new county...

[Neowarcloud]

$14,000 annually per donee

$5,250,000 gifting and estate exemption

REG 8/12 - passed 79
BEC 7/13 - passed 84
AUD 8/13 - passed 83
FAR 11/13 - Passed 83

Now off to a new county...

[Author]

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