Tax Guru – Ker$tetter Letter

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Gifting plans need professional guidance

Posted by taxguru on August 10, 2007


Subject: Re: Skirting Gift Limits

The following is, of course, a great technique.  However, I’d use your typical admonition to engage the services of a qualified tax professional to make sure that this arrangement doesn’t trigger the imputed income rules.


“A common technique used to get the cash into the childless couple’s hands now, without exceeding the limit, is to loan them the extra amount now and then forgive that debt in future years as gifts in those years.”





That is absolutely right.  I would hope that, after years of warning people how dangerous it is to function without the assistance of competent professional tax advisors, it would go without explicitly stating that every time.  However, it doesn’t hurt to remind people of that fact once again.

Kerry Kerstetter




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