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Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 3355
Experience:  18+ years of experience in tax preparation; 25+ years of experience as a real estate/corporate paralegal.
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Can I gift my children with a gift letter that has been notarized pre Dinar exchange at cu

Customer Question

Can I gift my children with a gift letter that has been notarized pre Dinar exchange at current rate of 1166.00 let's say $50,000 which makes the gift less than $500.00. Then when the rate changes they can cash them in at the new rate. Will this help/save both parties from high taxes? Mitzi
Submitted: 2 years ago.
Category: Tax
Expert:  Barbara replied 2 years ago.
Hi, Mitzi.
Welcome to Just Answer. My name is ***** ***** it will be my pleasure to assist you with your tax question today.
Recipients of gifts have no tax liability for the gift.
The giver of the gift will have a REPORTING requirement if the amount of the gift is more than $14,000 during a year and will use Form 709 to report the gift. There would be no tax liability for the giver of the gift until the giver exceeds the lifetime cap of $5.34 million.
For reporting purposes, the U.S. dollar rate in effect at the time the gift is made would be used.
Please let me know if I can assist you further.
Thank you and best regards,
Expert:  Barbara replied 2 years ago.
I see you are now offline.
If you have any other questions or concerns, please come back to me here at your convenience, and I will be happy to assist you.
If not, please take a moment to rate my answer since that is the only way I receive credit for answering you and alerts Just Answer to compensate me.
Best regards,