split gift

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Split Gift

The act of a married couple giving gifts to a single beneficiary separately in order to avoid the gift tax. Givers of gifts in excess of $10,000 are required to pay the gift tax. In order to avoid this through gift splitting, a husband and a wife may separately give up to $10,000, meaning that the beneficiary receives up to $20,000 without subjecting the giver to the tax.

split gift

A gift from one partner in a marriage to someone outside the marriage when one-half of the gift is assumed by law to have been made by each spouse. A split gift permits the $10,000 annual gift tax exclusion per recipient to effectively be $20,000 per recipient when the gift originates from a married couple.
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The return indicated that the gifts were split gifts and claimed annual gift tax exclusions of $720,000 for each of the Mikels ($12,000 per beneficiary multiplied by 60 beneficiaries).
For 2009, the exclusion is $13,000 per recipient ($26,000 if you split gifts with your spouse), up from $12,000 last year.
Gift Processing--Manages a broad range of gift types, including straight donations, pledges, recurring gifts, split gifts, soft credits, gifts of stock, and gifts in kind.
resident; 2) at the time of the gift, the spouses must be married (if during the same year the gift was made, the spouses divorce, they may still elect to split gifts made while they were married, provided neither of them remarry during the same calendar year); and 3) both the donor spouse and the nondonor spouse must signify their consent to the election to gift-split.
During the years since 1932, features such as a deduction for gifts to spouse and rules on split gifts, those gifts made jointly by a married couple, were introduced to gift tax law, but the predominant changes to the law were adjustments to the amount of annual exclusion and lifetime exemption.
In most cases the consenting spouse also must file a return reporting the split gifts.
The same rule applies if the donor and his or her spouse choose to split gifts in the year the contribution is made.
Accordingly, it is generally preferable to avoid split gifts on contributions to a QPRT.
Note, however, that if a husband and wife elect to split gifts, this election applies to all gifts made by both spouses during the year to third parties; they cannot decide to split only the annual exclusion gifts and not others.
See IRC Section 2503(b) regarding the annual exclusion from gift taxation and Section 2513 regarding split gifts.
Gift Processing -- Manages a broad range of gift types, including straight donations, pledges, recurring gifts, split gifts, soft credits, gifts of stock, and gifts in kind.
In 2009 and 2010, any gifts in excess of $13,000 for single individuals and $26,000 for married individuals who split gifts ($13,000 for each spouse) will reduce the credit.