Please no bashing | Imamother

causemommysaid

Mon, Jan 07 2019, 9:18 am

amother wrote:

No idea what your background is, but clearly its not in taxes, accounting, finance or law. The gift tax exclusion is $15,000 for 2019 - not $10 million. Your guess was just off by several zeros. And it is not optional to report.

There is a lifetime max of 5 million. Maybe it was upped to 10. Not sure how that plays out year to year.

Mommyg8

Mon, Jan 07 2019, 9:21 am

amother wrote:

Your background is clearly not in accounting.

First of all, you have to fill out a form and send it to the IRS. This amount is then applied towards the lifetime gift/inheritance exclusion, which is currently around ten million. Until then, no, you do not have to pay taxes.

Second, the $15,000 is applied PER person giving the gift, and PER person receiving the gift. So a typical family of two parents and married children (two people) has an exclusion of $60,000 which is probably a lot more than the typical young kollel couple is getting.

Third, as amother mentioned above, even after ten million, the burden of tax is always on the giver, not on the receiver.

Mommyg8

Mon, Jan 07 2019, 9:22 am

amother wrote:

Yes - and the gift giver pays a tax on it if it doesn't fall under the exclusion.

No.

I also want to point out that since gifts do not need to be reported as income, they do not count towards Jersey Care eligibility (I don't know about New York) because they use the AGI which is taken from your tax return. I don't know if food stamps has the same criteria- I actually think that not. But I don't have either of these programs so I'm just going by what I heard.

amother

Blush

Mon, Jan 07 2019, 10:28 am

amother wrote:

15K is the Exclusion from reporting the gift. Not the exclusion from paying tax on the gift.

100 gifts of 14K to 100 people. No reporting.