All Things Tax

All Things Tax

Like the title says, from the filing process and tax questions to tax policy and reform, you can search and share All Things Tax here. This is the place to find answers to all your general questions that don't fall under the other categories. And just a reminder: questions about software or online filing should be posted in DIY Products.

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Pioneer
Posts: 1
Registered: ‎05-09-2018
Accepted Solution

How to document cash gift wired to a joint account is meant to be split?

[ Edited ]

I want to gift $15K (max gift w/o tax) to each of my parents overseas. Together they have one joint bank account. If I wire $30K to that account, how do I document that it is $15K for each parent, and not $30K to one parent, in case the IRS audits?

 

I tried to call IRS to ask this question but after navigating through their voice menu, I always end up being told they don't answer this type of questions anymore.

Council Member
Posts: 548
Registered: ‎04-06-2016

Re: How to document cash gift wired to a joint account is meant to be split?

Since the account you're transferring the money to is a joint account, I'd be extremely surprised if the IRS would ever question you if you tell them it was $15,000 for each parent. (Assuming both parents were alive at the time of the transfer.) They'll have to take your word for it, since there's no way they can prove otherwise.  If there was no additional cost to make 2 separate wire transfers of $15,000 each, that MIGHT be more clear, but I don't see you needing any additional proof other than your statement.

 

There may be addition considerations since the money you're wiring is to an overseas bank account, but I don't know enough about what they may be to be comfortable offering any guidance on the topic. I also don't know if the tax laws of the country where your parent's bank account is located would require the transfer to be reported on the receiving end.

 

Karen