Christian Posted July 10, 2022 Report Share Posted July 10, 2022 A client called requesting the amount he can give to his daughter before having to file a gift tax return. I advised him it is $16,000 per person. He is going to give her that amount in savings bonds he has which are still accruing interest. I advised him to ascertain what the bonds current value is to avoid overshooting the $16,000 limit. After giving it more thought I believe I made a mistake. When she cashes those bonds she will pay taxes on the interest. I feel sure a bank or whoever cashes them for her will send a Form 1099-T to her at yearend. That being so the $16,000 gift should be calculated on what her did paid for the bonds back when he bought them. This would of course allow him to give her a significantly greater number of these bonds. Is this correct ? A $16,000 gift of cash would be tax free to the daughter. Quote Link to comment Share on other sites More sharing options...
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