Hello folks...first of all I appreciate this site and the collective wisdom and advice members provide..thank you!!...my wife and I are co-owners of a mutual fund that we started using to fund our nephews medical school tuition and living expenses... we are gifting to him shares of our fund annually by transferring ownership of said shares to his newly opened mutual fund account...this year the gifted amount exceeds the 2024 limit of $36,000 so I know I will have to file tax form 709...fortunately, when nephew files taxes, he will assume our long term gains and since he is no longer working, his tax liability on the gains will be very low...when nephew does schedule D, form 1040, would it be wise to include the term, "gifted" in column A, description of property? I thought this might reduce chances of IRS inquiry on how he acquired these shares...also regarding the 709 form, my wife and I, being joint owners, submitted only 1 letter of instruction to mutual fund requesting ownership transfer of gifted shares to nephew....would filing only one 709 form suffice or do both wife and I need to file separate forms? thanks again..
Statistics: Posted by petras52 — Mon Sep 16, 2024 4:05 pm — Replies 7 — Views 177