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Tax.appeal.168, Tax Accountant
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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: 1 year ago.
Category: Tax
Expert:  Tax.appeal.168 replied 1 year 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.

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