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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Just have them give you money.  Why would you take payment from a parent to help?[/quote]

We already get the max money as a gift so I did not know I could take more than that legally and without paying taxes. I had heard of the $13M exclusion but then I wonder why would they have the annual limit of $19K? It did not make sense to me.

My understanding was that my parent would have to pay tax on anything over the $19K they already give me.

The sibling also gets the max gift. Parent wanted to compensate me.

[/quote]

The $19k per year is in addition to the $14MM exclusion…so you can provide that to anyone without requiring you file a form with the IRS detailing the gift.

But your parent could hand you $14MM and it would be exempt to you from federal income tax…but your parent would have to let the IRS know they reached the max so that any additional
Dollar given to you would be taxable.[/quote]

Why is there an annual cap then?

None of this post makes sense.
[/quote]

Yes. Agreed. This is what confused me too.

[/quote]

There is no annual cap.  There is an annual amount that you can gift your kid that is tax free in addition to the lifetime cap ($14MM or $15MM whatever it is in the new tax bill).

[b]You can give $19K per year for 30 years and then $15MM in year 31 and no tax.[/b]

[/quote]

This one sentence has the most clarity of anything I have read. The online articles take five to ten paragraphs and are not nearly as clear in their writing. Thank you for this!

What you say is how I understood it yet I could not believe it was true and that I was understanding it correctly because it seems insane.

OP[/quote]

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