| 释义 |
Gift Splitting
A taxation rule that allows a married couple to split a gift's total value between each spouse as if each contributed half of the amount. Gift splitting allows a couple to increase the gift tax exemption amount by combining individual allowances. Investopedia Says:
For gift splitting to be official, both spouses must agree to the gift and specify the situation when filing taxes. In 2006, the gift tax exemption was set at $12,000 per individual gift annually. Gift splitting allows a couple to donate a total of $24,000 before being taxed on the contribution.
For example, let's say you want to give your child $20,000 to purchase a vehicle. If you make the gift alone, $8,000 ($20,000-$12,000) will be subject to gift taxes. However, if you split the gift with your spouse, with each of you contributing $10,000, both contributions will fall under the $12,000 limit, making the entire gift non-taxable. Related Terms:
Gift
Gift Of Equity
Gift Tax
Gifting Phase
Marital Deduction |