+1My thought is that you will be teaching your son a lesson I don’t believe you intend to. A gift that must be returned is not a gift. Filing a 709 doesn’t make it a gift. I don’t think the 709 police are coming after you, but I would feel bad about it. He’s young and might not even connect the dots, but I would if it were me and my child. Children learn from watching us much more than from what we tell them.
Are there any pitfalls with this plan to avoid taxes other than having to file a gift tax return Form 709 and the possibility he won't return the money to us? Is this worth it to save around $670 per year in taxes? It's pretty easy for me to fill out Form 709.
I wanted to get some collective thoughts.
I would think expecting it to be re-gifted would create a "step transaction" that could cause scrutiny.
Statistics: Posted by RetiredAL — Thu Mar 07, 2024 6:46 pm — Replies 2 — Views 93