The act of taking a large monetary gift and dividing it to avoid having to pay federal and/or state taxes on the gift. For example, Becky's parents want to give her $24,000 as a gift for completing her degree. To prevent Becky from having to pay taxes on the gift, her parents both give her $12,000 so that it considered two separate gifts.
Related information about gift splitting:
- Gift Splitting Definition | Investopedia
A taxation rule that allows a married couple to split a gift's total value as if each contributed half of the amount. Gift splitting allows a couple to increase their total ...
- Can Gift-Splitting Go Wrong?
Nov 26, 2011 ... Gift-splitting offers tax advantages, but IRS rules must be followed.
- Publication 950 (10/2011), Introduction to Estate and Gift Taxes
If one of you gives more than the $13,000 exclusion, see Gift Splitting, later. ... Currently, gift splitting allows married couples to give up to $26,000 to a person ...
- Gift-Splitting Decision Tree
This flowchart assumes that a determination has been made that gift-splitting is appropriate and indicates whether gift-splitting is available and if so whether only ...
- Udell Associates – Gift-Splitting Tax Traps
Watch out for gift-splitting tax traps. This year, the inflation-adjusted annual gift tax exclusion remains at $13,000, up from $12,000 in 2008. Annual exclusion gifts ...
- Gift Tax Reporting
In addition to the annual exclusion, the IRC allows gift splitting by married couples. ... As a result, a married couple electing gift splitting, can gift up to $21,000 to ...
- When it Pays for Married Couples to Split Gifts - Toscano & Ardito ...
By gift splitting, this couple can make the most of their combined gift tax exclusions. Doubling ... To qualify for gift splitting, spouses must meet certain conditions: ...
- Gift Splitting - Financial Dictionary - The Free Dictionary
A technique used to avoid a gift tax in which a large sum of money to be given by two parents to a child is halved and given to the child separately. For example ...