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[quote=Anonymous][quote=Anonymous][quote=Anonymous]^^^also the gifter needs to file gift tax returns (Form 709) for all gifts. Penalties for not filing. [/quote]

You are misinterpreting the code, which is very confusing, admittedly.

1. Anything up to $18k in a calendar year is excluded from gift tax reporting. If you give someone $18k in 2024, you don't have to report it, or keep track of it in any way.

2. Anything OVER $18k in a year means, yes, you need to do form 709, and the amount over $18k (say $82k if you gave $100k total), would in theory be subject to gift tax.

3. However, as long as you keep records and note it in the filing, and amounts that total under $13 million lifetime to a single person are not taxable.

https://www.nerdwallet.com/article/taxes/gift-tax-rate

"For example, if you give your brother $50,000 in 2024, you’ll use up your $18,000 annual exclusion. The bad news is that you’ll need to file a gift tax return in 2025, but the good news is that you probably won’t pay a gift tax. Why? Because the extra $32,000 ($50,000 - $18,000) simply counts against your lifetime exclusion. Next year, if you give your brother another $50,000, the same thing happens: you use up your annual exclusion and whittle away another portion of your lifetime exclusion."[/quote]

Also to note, this is why someone who say gets a $200k.gift from their parents for a down payment, the parents don't owe gift tax on it (assuming below the lifetime max exclusion). [/quote]

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