Post # 1
I was wondering if anyone knew the answer to this?
DH’s parents are planning on giving us a substantial financial gift towards the purchase of a new home – approx. $25,000 for a down payment.
They have already given me $4000 this year for a gift for the honeymoon. Now obviously another $25,000 would exceed the gift tax for the year if it occurs prior to January 1st.
I know that married couples can gift up to $26,000 per year without tax liability. What I’m wondering is, if they gift to a married couple, can they give $26,000 to the couple or $26,000 to each individual?
Post # 3
I would assume it’s $26,000 per couple, since the typical threshold is $13,000 per individual. It wouldn’t make sense to double the individual threshold solely because someone is married. Your best bet, however, is to talk to your mortgage lender to make sure there are no specific regulations in your state that would come into play as well.
Post # 4
Ok, I’m pretty sure a married couple could give $26,000 to each spouse, based on some limited information I’ve seen on the subject, although it isn’t mentioned frequently.
The doubling I believe doesn’t have to do with the recipient, it has to do with that individuals can give $13,000 to any one person, but a married couple can jointly give $26,000 to any individual.
Post # 5
@Cem0930: You’re correct, a married couple can jointly give $26,000 to any one person because each individual has a $13,000 annual exclusion limit. So, if they have already given you $4,000, they may give you an additional $22,000. They can give the remainder to your DH.
It does not matter that you and your husband are going to receive more than $26,000 combined (because I believe that’s what you’re asking–right?).
I’m an accountant (although not in tax)–I remember this from school. =)
Post # 6
I guess to better answer your question, they can gift EACH of you $26,000.