# What Is The Maximum I Can Give To Someone Without Them Paying Taxes?



## fmdog44 (Apr 17, 2021)

The max used to be anything less than $10,000 will not require tax paid. I want to give some money to my niece but without her having to pay tax on it.


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## Myquest55 (Apr 17, 2021)

2021 limit on cash gifts without tax is $15,000.00 per person - that means if your niece, for example, is married with two children you are able to gift each person in that household $15,000 each for a total of $60,000.00.


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## retiredtraveler (Apr 17, 2021)

You could experiment. Send me $20,000 and see if the IRS notices............


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## Buckeye (Apr 17, 2021)

You pay the gift taxes, not the recipient.  So give away!


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## chic (Apr 17, 2021)

fmdog44 said:


> The max used to be anything less than $10,000 will not require tax paid. I want to give some money to my niece but without her having to pay tax on it.


If it's a one time gift it can be in any amount and the IRS can't touch any of it. Ask your attorney if you have questions.


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## fmdog44 (Apr 18, 2021)

retiredtraveler said:


> You could experiment. Send me $20,000 and see if the IRS notices............


It's in the mail.


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## Ceege (Apr 18, 2021)

fmdog44 said:


> It's in the mail.


Me, too!  Me, too!


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## fmdog44 (Apr 18, 2021)

Buckeye said:


> You pay the gift taxes, not the recipient.  So give away!


From *IRS Publication 559*: "Example 1. The decedent gave his niece a cash gift of $8,000. It is his only gift to her in 2020. The gift isn't a taxable gift because it isn't more than the $15,000 annual exclusion."


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## Jules (Apr 18, 2021)

fmdog44 said:


> The *decedent* gave his niece a cash gift of


Fmdog, I don’t think you’re in any rush to quality for this.


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## Myquest55 (Apr 19, 2021)

Oh - just to clarify that:  The gift limit for 2021 is $15,000.00 per person, PER YEAR.


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## Alligatorob (Apr 19, 2021)

Myquest55 said:


> Oh - just to clarify that:  The gift limit for 2021 is $15,000.00 per person, PER YEAR.


Yes, and and as I understand it if you have a spouse you can each give $15k, for a total of $30k.  

And I believe it is also true that you pay the taxes on gifts, not the recipient.  And even if you go over the $15k limit you don't necessarily pay taxes, but you may have to deduct those gifts from your eventual inheritance tax exemption.  So if you want to give much money it gets complicated, I suggest engaging a tax specialist if that is what you have in mind.  

Listening to people like me who probably have less expertise than they would like to think can be dangerous.  But I am pretty sure the $15k/yr thing is real, stay under that and you should be fine.

Rob


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## Myquest55 (Apr 19, 2021)

You're right Rob - thanks for further clarification!

fmdog44 - you have some options!


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## Lethe200 (Apr 21, 2021)

Forbes wrote one of the best articles on the 2021 gift tax vs estate tax considerations:
IRS Announces Higher Estate And Gift Tax Limits For 2021v


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## oldmontana (Apr 21, 2021)

Lethe200 said:


> Forbes wrote one of the best articles on the 2021 gift tax vs estate tax considerations:
> IRS Announces Higher Estate And Gift Tax Limits For 2021v



From your link.


The Internal Revenue Service announced today the official estate and gift tax limits for 2021: The estate and gift tax exemption is $11.7 million per individual, up from $11.58 million in 2020. That means an individual could leave $11.7 million to heirs and pay no federal estate or gift tax, while a married couple could shield $23.4 million.

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We gave one of our sons $70,00.00 so he could pay off the mortgage on his house.  We have to file a IRS form 709. No tax due by us or our son.

Our net worth is not high enough to worry about even if they reduce the estate and gift tax exemption.


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## Buckeye (Apr 21, 2021)

fmdog44 said:


> From *IRS Publication 559*: "Example 1. The decedent gave his niece a cash gift of $8,000. It is his only gift to her in 2020. The gift isn't a taxable gift because it isn't more than the $15,000 annual exclusion."


yes, and if any tax is due, you (donor) pay it.  So, again, give away!


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## fmdog44 (Apr 25, 2021)

Buckeye said:


> yes, and if any tax is due, you (donor) pay it.  So, again, give away!


Reading 559 disqualifies your post


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## SetWave (Apr 25, 2021)




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## Butterfly (Apr 26, 2021)

This is an area where I wouldn't EVER attempt to do anything without consulting an attorney skilled in this field of law.   The trouble with everything involving or possibly involving the IRS is that it's a minefield and the smallest misstep can blow up in your face.  Better to spend a few dollars on an attorney's advice ahead of time than to spend $$$$$s trying to clean up a mess.


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## Buckeye (Apr 26, 2021)

fmdog44 said:


> Reading 559 disqualifies your post


Hmmm.  From 559...

_Estate and Gift Taxes This publication doesn't contain all the rules and exceptions for federal estate, gift, or GST taxes, nor does it contain all the rules that apply to nonresident noncitizens. If you need more information, see Form 709, Form 706, Form 706-NA, United States Estate (and Generation-Skipping Transfer) Tax Return, Estate of nonresident not a citizen of the United States, and the related instructions. This publication also doesn't contain any information about state or local taxes. That information should be available from your state and local taxing authority. The discussion below is to give you a general understanding of when estate, gift, and generation-skipping transfer (GST) taxes apply_

Excerpt from page 25...
Person receiving the gift or bequest. Generally, the person who receives a gift or bequest of property from an estate won't have to pay any federal gift tax or estate tax. Also, that person won't have to pay income tax on the value of the gift or inheritance received.

And yes, I admit my CPA license is inactive since I retired.  Is yours still active?


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## fmdog44 (Apr 26, 2021)

Buckeye said:


> Hmmm.  From 559...
> 
> _Estate and Gift Taxes This publication doesn't contain all the rules and exceptions for federal estate, gift, or GST taxes, nor does it contain all the rules that apply to nonresident noncitizens. If you need more information, see Form 709, Form 706, Form 706-NA, United States Estate (and Generation-Skipping Transfer) Tax Return, Estate of nonresident not a citizen of the United States, and the related instructions. This publication also doesn't contain any information about state or local taxes. That information should be available from your state and local taxing authority. The discussion below is to give you a general understanding of when estate, gift, and generation-skipping transfer (GST) taxes apply_
> 
> ...


 Inactive=Revoked. You know what they call the graduate of medical school with the worst GPA? Doctor.


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## oldmontana (Apr 26, 2021)

Butterfly said:


> This is an area where I wouldn't EVER attempt to do anything without consulting an attorney skilled in this field of law.   The trouble with everything involving or possibly involving the IRS is that it's a minefield and the smallest misstep can blow up in your face.  Better to spend a few dollars on an attorney's advice ahead of time than to spend $$$$$s trying to clean up a mess.


You do not need a attorney to fill out a form 709.  A CPA can do it.  H & R Block can do it.


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## Nathan (May 19, 2021)

Butterfly said:


> This is an area where I wouldn't EVER attempt to do anything without consulting an attorney skilled in this field of law.   The trouble with everything involving or possibly involving the IRS is that it's a minefield and the smallest misstep can blow up in your face.  Better to spend a few dollars on an attorney's advice ahead of time than to spend $$$$$s trying to clean up a mess.


I'm not particularly scared of the IRS, but recently had a CPA do our corporate taxes, as this is the first return since our incorporation, and I just want it all done right.   Next year I may do the taxes myself, now that I have a correct _template_ of our tax situation.


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