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Old 12-26-2007, 06:36 PM
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Gift in family is exempt from tax?

Gift in family is exempt from tax
Wife can give gift to her husband and Husband can give gift to his wife.? Is this gift is tax free?



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Old 12-27-2007, 03:45 AM
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Gift in family is exempt from tax
Wife can give gift to her husband and Husband can give gift to his wife.? Is this gift is tax free?[/quote]



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Old 12-27-2007, 09:59 AM
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Are Husband-Wife Gifts subject to Gift Tax?

Generally speaking, gifts made to spouses are a tax free transaction. The Annual Gift Tax Exclusion amount of $12,000 for Tax Year 2007 does apply not to Husband-Wife.

There is nontheless an exception, in that the receipient spouse must be a US citizen! There is a different rule that applies to a Non-US Citizen spouse that is a receipient of the Gift. The IRS has determined that for calendar year 2007, "the first $125,000 of gifts to a spouse who is not a citizen of the United States (other than gifts of future interests in property) are not included in the total amount of taxable gifts made during that year".

Thus, for a situation where gifts made to Non-Citizen Spouses exceed the $125,000, the excess amounts would be subject to subject to Gift Tax.

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