? for the CPA types

**mrryde** · 02-09-2007, 12:32 PM

Any tax issues that doug or myself need to be considering with his collection?

**mnflyfish** · 02-09-2007, 12:43 PM

There shouldn't be a problem. The "gift" limit is $10K, so that would mean everyone could donate up to $9,999 and there wouldn't be a problem. Of course this comes from an accountant that hasn't even balanced his own checking account in 5 years and never even attempted the CPA exam.

Good Luck,
Jay

**Buzzworthy** · 02-09-2007, 01:48 PM

I am PMing UTDave. He should have the answers we need.

**irul&ublo** · 02-09-2007, 03:43 PM

What mnflyfish said.

**amatog** · 02-09-2007, 08:27 PM

$12k gift per donee, per year= Exclusion Gift = no gift or estate tax consequences. Gift over 12k = you start to use your 1 million lifetime gift tax exemption. This also depleates the unified credit you have left for you estate tax return. Currently this unifed credit is 2 milion.

You may also, in addition to the 12k per donee, pay education or medical expenses for anyone with no gift/estate tax problems. the check must go directly to the institution (School , hospital, etc) to receive this exempt transfer status.

There is no income tax on the receipt of the gift and no deduction for the donor.

To make a deductible gift the donee must have received certification of tax-exemt status from the IRS: 503(c) is the code section.

This is not legal advice, please consult your estate tax attorney for the details as they apply to any specific situation.

**UTdave** · 02-10-2007, 08:55 AM

Originally Posted by amatog

$12k gift per donee, per year= Exclusion Gift = no gift or estate tax consequences. Gift over 12k = you start to use your 1 million lifetime gift tax exemption. This also depleates the unified credit you have left for you estate tax return. Currently this unifed credit is 2 milion.

You may also, in addition to the 12k per donee, pay education or medical expenses for anyone with no gift/estate tax problems. the check must go directly to the institution (School , hospital, etc) to receive this exempt transfer status.

There is no income tax on the receipt of the gift and no deduction for the donor.

To make a deductible gift the donee must have received certification of tax-exemt status from the IRS: 503(c) is the code section.

This is not legal advice, please consult your estate tax attorney for the details as they apply to any specific situation.

Again since I'm requested I'll just quote the right answer.