Originally Posted by Wnhough
1. Would filing three or four amended returns flag you for an audit?===>>>>>>>>I do not think so; however, it depends. Filing an amended return doesn't automatically unleash the auditors. As they are going over your return twice, however, that doubles the chance they'll spot a red flag. Only 0.9 percent of individual taxpayers are audited annually, but if you're self-employed or make more than $200k-$1 m a year, the risk increases.
2. There is a house a family member wants to gift to me. If they gift me a $14k portion of it each year, does there need to be a $14k deed done each year for the IRS, or is doing just one deed at the very end of the game sufficient?========>>>>>no deed at all and the donor also DOES NOT NEED TO FILE Form 709 as $14K is the annual exclusion amount. An annual exclusion gift is one that qualifies for the current $14k per person annual exclusion from federal gift taxes. In other words, under the tax law, if property is transferred from one person to a nonspouse beneficiary where no cash or other monetary value is exchanged and the value of the property so transferred is $14k or less, then the transfer is not a gift at all.
.Married couples can combine their annual exclusion amounts and gift $28k to each person, per year without incurring any gift tax liability. But note that even if a couple limits their gift to double the annual exclusion amount, they may still need to file a federal gift tax return Form 709, to report any split gifts.
Thanks for your response!
1. You state that 14k is not a gift at all. So does a 14k gift need to go on either a donor or recipient's taxes AT ALL? Won't the IRS want an explanation on how I got a 75k house in the end?
2. Can a mother and father give 14k to their son and 14k to their daughter-in-law, for a combined gift of 28k, even if the son and daughter-in-law file jointly?
3. Can a mother and father give 28k to their son and 28k to their daughter-in-law, for a combined gift of 56k? It's just that they would have to possibly file a 709?