Do Gifts Work Like IRAs

Today TaxMama hears from Steve in Indiana with this question. “Does the gift tax exclusion work like an IRA? In other words, can a gift for 2008 be made in 2009 as long as it’s made before the filing of 2008 tax returns, or some other marker of time?”

Dear Steve,

Actually, when I saw the first sentence in your question – Does the gift tax exclusion work like an IRA? – I thought your question was going to end up being something like – if I make a gift to my children now, can they give it back to support me when I retire? Now that would be a really great idea!

Regardless, you have a very interesting perspective. But, no.

The gift must be made during the calendar year.

Good try, though.

You can read more about gift tax rules in IRS Publication 950.

http://www.irs.gov/publications/p950/index.html

And remember, you can find answers to all kinds of questions about gift taxes and other tax issues, free. Where? Where else? At TaxMama.com

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