Submitted By: Wayne
Answered: August 10, 2015 11:24 am

My granddaughter is getting married soon. Are there any tax implications of my gift to her?

Under federal gift tax rules, you can give each person $14,000 in 2015. If you make the check out to both your granddaughter and her spouse, you can effectively give up to $28,000 without any gift tax, or even the need to report the gift on an annual gift tax return. If you want to give even more, you can do so by having your spouse join in the gift or by using part of your lifetime gift tax exemption amount ($5.43 million in 2015). Both of these alternative ways to give more tax free require you to file Form 709.

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Tax Glossary

Capitalization

Adding a cost or expense to the basis of the property.

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