Are gifts deductible?
March, 26 2014 by Dave Du Val, EA
Hey Dave,
I gave my daughter $10,000.00 for a down payment on her house. It was earmarked in our trust to be paid to her on our death. I inherited the money from her mother, who passed away earlier this year. Is it deductible?
Sincerely,
Travis
Hi Travis,
Please accept my condolences for your family’s loss.
As to your question, when you give a gift, it is not deductible to you, nor is it taxable to the person to whom you give it. However, you are only allowed to gift a specific amount to each individual person each year. Gifts exceeding this specified amount will require the filing of a gift tax return and use up a portion of your lifetime gift tax exclusion. For 2013, the limit was $14,000 per giftee, so this gift does not need to be reported, nor is it deductible.
Deductibly Yours,
Dave Du Val
Want peace of mind?
Dave Du Val, EA
Chief Compliance Officer for TRI Holdco
