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Old 04-11-2015, 05:07 PM
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Is amended return flag for audit?

1. Would filing three or four amended returns flag you for an audit?

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?



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Old 04-12-2015, 04:05 AM
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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.



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Old 04-12-2015, 10:39 AM
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Originally Posted by Wnhough View Post
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?



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Old 04-12-2015, 03:10 PM
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Originally Posted by nunyabiz View Post
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?
#1;$75K??

#2;Yes . $28K each to son and another $28K to DIL per year

#3;as said, $28K to son, another $28K to son; mother gives $14K to son and another $14K to DIL so does father.



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Old 04-12-2015, 03:31 PM
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Originally Posted by Wnhough View Post
#1;$75K??

#2;Yes . $28K each to son and another $28K to DIL per year

#3;as said, $28K to son, another $28K to son; mother gives $14K to son and another $14K to DIL so does father.
$75k is for the value of the house. Trying to get gifted 14k portions each year so that I don't get one property gift of 75k and have to pay taxes.



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Old 04-12-2015, 08:48 PM
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Originally Posted by nunyabiz View Post
$75k is for the value of the house. Trying to get gifted 14k portions each year so that I don't get one property gift of 75k and have to pay taxes.
as said no you are a recipient, i mean a donee of the gift does NOT pay any tax on the gift at all.



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