gifting to buy a home
Client gifted 80k to one son (not married at the time) to buy a home in 2020. Didn’t file any gift tax forms.
His other son (married) is buying a home, and he is gifting him $100,000
The clients who are gifting the money are 59 and 58 married.
Questions:
- should they file any tax forms for 2024 for the 100k this year?
- Should they file any tax forms for the 80k they gave in 202o?
- If they don’t file any form are there any fines to them?
Thank you,
Douglas
Permalink Submitted by Alan - IRA critic on Fri, 2024-08-09 17:29
Gift tax returns need to be filed for 2020 and 2024 to report the gifts, since they exceed the annual gift tax exclusion amounts (18k per person for 2024), even if both spouses made the gifts. The amounts on the gift returns do not generate current taxes, but they reduce the unified credit remaining. If the returns are not filed, there is a potential penalty if the IRS detects these gifts.