Gifting StrategiesGift SplittingIf you are married (and neither of you are nonresident aliens), you can file an election on your gift tax return that allows both you and your spouse to treat gifts made by one spouse as having been made equally by each of you. This is called gift splitting. If you gave your brother $24,000, and your wife didn’t give him anything, you can elect gift splitting and the entire gift is covered by the annual exclusion ($12,000 from you and $12,000 from your spouse).
Gifts And Taxes
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Gift Examples:
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Gift Tax Result:
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You gave your sister $24,000 - You can gift split with your spouse and you would be viewed as each giving $12,000
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No gift tax, since each gift is equal to or less than $12,000.
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Your spouse gave her mother $15,000 - You can split the gift with your spouse. Your gift would be viewed as each giving $7,500.
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No gift tax since each gift is equal to or less than $12,000.
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You gave the March of Dimes $15,000.
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No gift tax since the March of Dimes is a qualified charity. You may also get an income tax deduction for this gift.
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Your spouse paid $13,000 directly to a hospital for her brother’s heart surgery.
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No gift tax since it was a direct payment for medical expenses.
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You gave your spouse a $22,000 car for Christmas.
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No gift tax because of the unlimited marital deduction.
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