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Gift To My Daughter
Sent to Tax Experts March 18 09:10 PM

I will be giving my 25 year old Daughter, $900,000 as a gift this week. I have only used $1260 of unified tax credit prior to this year.

What is the impact to my unified tax credit account?
What is left over to give gift to my son in lump sum, non taxable, in the coming 10 years??

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Orlando, Florida

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March 18 10:12 PM (1 hour and 1 minute and 30 seconds later)
         
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The first $12000 of your gift are tax free and estimate gift tax (using quick tax method) will be

($900,000 - $12,000) x 39% - $44,200 = $302,120

Gift tax exclusion for 2006 is $345,800, so you will not pay any gift tax and still will have unified tax credit

$345,800 - $1,260 - $302,120 = $42,420

You need to file IRS form 709 - http://www.irs.gov/pub/irs-pdf/f709.pdf

Some details may be found in IRS publication 950 - http://www.irs.gov/pub/irs-pdf/p950.pdf

Let me know if information needed.



Edited by levr on March 18 2006 at 10:27 PM
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