Gifting to relatives
This question is not really related to IRA’s, but about gifting to relatives or actually anyone. I know there are experts on this site that can give me a correct answer to my question. I know a person can give $17,000 to anyone this year, tax free. If my wife and I want to give $34,000 to our son and to our daughter, is one check written to each of them for $34K OK? In other words, can I write a check and sign it for each of them for $34K, will the $17K limit for my wife and I be legal or do we each need to write separate checks of $17K to each of them to satisfy the IRS. I don’t want to get sideways with the IRS on a technicality.
Thanks for any help with this.
Permalink Submitted by Kevin Kennedy on Wed, 2023-11-08 20:38
My understanding is you would need to file a form 709 in order to split the gift if you were to write one check to each of your children. If you and your wife wrote separate checks, no form 709 would be necessary as each of you is under the exclusion limit.
Permalink Submitted by Rusty Nelson on Wed, 2023-11-08 22:23
Thank you Permalink for your response. I was a little leary about writing one check for $34K to each of our children. My wife and I will each write a check to each of our children for $17K to make the government happy.Rusty Nelson