Quote:
Originally Posted by Pazuzu
You (meaning, any US citizen) can give any other US citizen $16k per year tax free, every year.
Do you have a wife?
YOU give son #1 $16k. Your wife gives son #1 $16K. You give son #2 $16K. Son #2 gives son #1 $16K. Son #1 receives $48K tax free.
The other $2K needs to be dealt with next year, or hand him cash.
EDIT: Sorry, it's now $18K per year, problem solved.
EDIT AGAIN: There is also a multi-million dollar gift limit per person, and you *might* be able to just give him the $50k and apply it against the $13M lifetime gift, but I'm not exactly sure how that works.
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As long as he reports the gift on his taxes over the bare min . It goes against that multimillion dollar cap and it’s all kosher. No extra tax liability.