quote:

Originally posted by Woodman:

quote:

Originally posted by 911Boss:
... and between them they can exclude $22 million.

I ***THINK*** the Lifetime Gift Tax Exemption is usually expressed as double the actual value. Journalism and artistic flair, maybe.

Lifetime gifts beyond the annual exclusion amount count towards the $11.4 million combined estate/gift tax exemption. - forbes

So if daddy divorced (not Karl, but in general) his Lifetime Gift Tax Exemption is $5.7 million.

But if he becomes a widower, it is $11.4 million.

But I've got bigger problems. Those numbers are just rounding figures to me when calculating my net worth. So I've got to come up with a decent tax dodge. Maybe gold ...

No. "Combined" in this case refers to gift taxes and estate taxes, combined and not husband and wife. Each person can give in his or her lifetime or after his or her death, $11 million.

A further point on when to file a 709: if Karl gives $30,000 in one year to Jeff, Karl and Mrs. Karl can elect to gift split by each filinf a 709 and treating half the gift as having been given each of them. If Jeff is married, Karl and Mrs. Karl can give an additional $30,000 to Mrs. Jeff. Most of the loan would be payed off then.

quote:

Originally posted by trapper189:

quote:

Originally posted by Woodman:

quote:

Originally posted by 911Boss:
... and between them they can exclude $22 million.

I ***THINK*** the Lifetime Gift Tax Exemption is usually expressed as double the actual value. Journalism and artistic flair, maybe.

Lifetime gifts beyond the annual exclusion amount count towards the $11.4 million combined estate/gift tax exemption. - forbes

No. ...

True. Thank you for making me look this up. News to me indeed.

The Tax Cuts and Jobs Act (TCJA) spiked the exemption up to $11.18 million in 2018—effectively doubling it from the year before. It was adjusted to $11.4 million in 2019 to keep pace with inflation. But this is only a temporary measure because the TCJA will expire at the end of 2025 unless Congress acts to renew the legislation. Otherwise, the exemption could plummet back to the $5 million range.

https://www.thebalance.com/gif...me-exemption-3505656

quote:

Originally posted by AZSigs:
Go in and pay cash on the loan balance. I don't think the IRS is going to ask where you got the money from since the only record will be principal balance and interest paid on the year end 1099-INT.

There are no tax consequences to doing this above board, as discussed above. Ne reason to take any risk.