How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Megan C Your Own Question
Megan C
Megan C, Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 16544
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
23669918
Type Your Finance Question Here...
Megan C is online now
A new question is answered every 9 seconds

If my mother-in-law gifts my wife $280,000 (no previous gifts)

This answer was rated:

If my mother-in-law gifts my wife $280,000 (no previous gifts) and my wife uses that money to buy out my community property interest in our home in California pursuant to a transmutation agreement, can I turn around and gift most of that money to my wife's brothers and sisters, or would that invalidate her mother's gift or our transmutation agreement, or create other problems with the IRS?

Megan C :

Thank you for your question, and thanks for using JustAnswer.com

Megan C :

In order for this to be classified as a gift, no consideration would be given - it's money given to your wife with no strings attached. In no way should it be required that you give the funds to your wife's brothers and sisters that should be something that you just want to do.

Megan C :

If you just want to gift money to your wife's brothers and sisters, that's okay. Doing so will not invalidate the gift that your mother in law gave, or the transmutation agreement.

Megan C :

In terms of what the IRS considers.

Megan C :

Your mother in law will have to fill out a gift tax return for her gift to your wife, but no gift tax will be due.

Megan C :

You will have to fill out a gift tax return for the funds given to your brothers and sisters in law but no tax will be due.

Customer:

If the gifts to my brothers- and sisters-in-law are all $14,000, would I still have to file a gift tax return?

Megan C :

No, not unless you gifted more than that

Customer:

Thanks.

Megan C :

You're welcome. Is there anything else that I can assist you with today?

Megan C and other Finance Specialists are ready to help you
Thank you so much for your positive rating. Please come back and visit me any time you have a tax, finance, or social security question that needs answered. It was a pleasure working with you today. Hope the weather out in California is as nice!

Megan