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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Furthermore, unmarried couples are not eligible to use the Deceased Spousal Unused Exemption Amount or split gifts on a federal gift tax return.
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).
Eve can file a gift tax return (IRS Form 709), on which Brett gives his consent to split gifts, so Brett has made a $14,000 gift to each person for tax purposes, if not in reality.
In cases where only one spouse has significant assets and the couple wants to use both spouses' exclusion amounts, split gifts are recommended.
2gm) Split gifts allow spouses to, in effect, utilize each other's annual exclusions and exemptions (see Q 7577).
135) Under such a presumption, servicemembers who give third parties gifts like cars, which were acquired during the marriage, may find such gifts classified as split gifts (i.
1) Returns must be filed if a married couple elects to split gifts for the year (Q 906).
Split gifts can be made for purposes of the GST tax.
For 2009, the exclusion is $13,000 per recipient ($26,000 if you split gifts with your spouse), up from $12,000 last year.
The premature death of one of the insured(s) of a TOLI survivor life insurance policy will reduce the ability to split gifts in the future, thereby limiting the amount of annual exclusion gifts available to fund future premiums.
5 Years Annual Exclusion $12,000 (in 2007) Split Gifts Yes Number of Donees 5 Annual Gifts ($12,000 x 2 x 5) $120,000 Donor's Projected Estate Tax Bracket 45% (in 2007) No Growth Total Amount of Gifts ($120,000 x 43) $5,160,000 Potential Estate Tax Savings (45%) $2,322,000 With Growth Annual After-Tax Return on Gifts 4% Value of Gifts at Life Expectancy $13,729,545 Potential Estate Tax Savings (45%) $6,178,295
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.