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Need Legal Advice: What is the Max gift ($$)I can give without the recipient paying tax on it?

Niece called me in tears, she is about to lose her house and needs $20,000.

Years ago, the max transferrance of gift money was $10,000 without the recipient paying income taxes on the money. Has that gone up? And was that amount per year or per gift?

by Anonymousreply 309/04/2013

The annual gift exclusion for this year is, I think, $14,000. That is the maximum amount you can give to any single person. You can give as many of those gifts as you want in any year.

Any gift above that amount is subject to an onerous gift tax that is owed by YOU, not the recipient.

Are you married, OP? If so, you and your spouse could each give your niece a gift, up to $28,000 total.

Is Your niece married? You could give gifts to both her and her spouse, again totaling up to $28,000.

You could loan her the money. The IRS will expect to see it repaid, with interest. They have a minimum interest rate, and you must charge at least that much. Of course, the interest becomes income to you, on which you will owe tax.

If a partial amount will tide your niece over, you could give her $10,000 now, and $10,000 on 1/1/14.

Whatever you do, SEE A CPA OR TAX ACCOUNTANT before you proceed.

by Anonymousreply 109/04/2013

Don't do it, the little bitch will hit you up again in six months.

by Anonymousreply 209/04/2013

Download the form from for gifts and have her fill it out. Your estate might need it when you die.

I'm assuming she is unemployed.

If she has no income, helping her catch up on her mortgage payment will do no good. It's just extending the torture.

Help her pay off the car or pay for an apartment lease security, but do not throw money at her bank. They won't thank you and neither will she.

by Anonymousreply 309/04/2013
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