Discussion:Joint Account-Husbands Earnings and Gift Tax
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Discussion Forum Index --> Tax Questions --> Joint Account-Husbands Earnings and Gift Tax
| 23 April 2007 | |
| Hello.
I am wondering if there is a gift tax issue in the following scenerio. Husband and wife have a joint brokerage account. Each spouse writes a check of 12k to each of their children from the account. However, I am trying to determine if there may be an issue with the fact that all the money in the joint account is from the husband's earnings, (wife stays at home). Is there a gift-splitting issue here? I would appreciate any advice and some specific references on this issue. Sincerely, HLD, (JD) | |
| 23 April 2007 | |
| HLD:
My understanding (and I am no expert in this area) is that one individual can give a $12k gift to another individual without a gift tax return being filed. So, the husband can give a $12k gift to son # 1 and the wife can give a $12k gift to son # 1 and there is no problem. If the money is in a joint account then the either husband or wife has the right to do what they want with the money. Hopefully some REAL experts will chime in soon. Dusty (not a Gift Tax expert, but I stayed in my own bed last night) | |
Doug Phillips (talk|edits) said: | 23 April 2007 |
| First, let me know if there were any Christmas or birthday gifts given. | |
| 23 April 2007 | |
| Assuming no Christmas/Birthday gifts. and alternatively what if there were? for future reference. Thanks. | |
| 23 April 2007 | |
| I believe that this would be a state law issue of ownership of funds. In many states, the contributing joint tenant would be considered as the owner of the funds, and gift splitting could be elected if each spouse is a citizen or resident of the U.S. In which state do you practice? | |
| 24 April 2007 | |
| Take a look at New York Banking Law Section 675. I believe that section provides that creation of a joint tenancy bank account results in each joint tenant being an equal owner of that account. | |
