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 Tax.appeal.168 Your Own Question
Tax.appeal.168, Tax Accountant
Category: Tax
Satisfied Customers: 3443
Experience:  3+ decades of varied tax industry exp. Tax Biz owner
Type Your Tax Question Here...
Tax.appeal.168 is online now
A new question is answered every 9 seconds

My husband and I transferred $20,000 from out joint checking

Customer Question

My husband and I transferred $20,000 from out joint checking acct to our son's and daughter in-law's joint checking account last year to help them by a family van. What do we do?
Submitted: 6 months ago.
Category: Tax
Expert:  Tax.appeal.168 replied 6 months ago.

Was this a gift or a loan? If it was a gift, as the $20,000 was given to two people, the $20,000 can be divided as if $10,000 was gifted to the husband, and the other $10,000 gifted to the wife. Saying that you gave each individual $10,000 does not create a taxable event. The gift is not deductible to you, nor is it taxable to your son and daughter in-law.

The current gift tax rule is that a U.S. person can gift another U.S. person a maximum of $14,000 a year without creating a taxable event. An amount that exceeds $14,000 will require the donor to complete a Form 709, Gift Tax Return.

Let me know if I can be of further assistance to you regarding this matter. If all is clear, please be so kind as to positively rate my response 3 or more stars so that I can receive credit for assisting you this evening.