sambob Posted June 21, 2011 Report Share Posted June 21, 2011 I know I'm allowed to gift up to $13,000 per year ($26,000 between my husband and myself) without paying gift tax but does anyone know how we should calculate the value of the gift? Do we assume the CBI rate on the day of the gift or would they consider what we paid? Sambob Link to comment Share on other sites More sharing options...
Kanga Posted June 22, 2011 Report Share Posted June 22, 2011 I know I'm allowed to gift up to $13,000 per year ($26,000 between my husband and myself) without paying gift tax but does anyone know how we should calculate the value of the gift? Do we assume the CBI rate on the day of the gift or would they consider what we paid? Sambob It is the value of what ever it is when you gift it. The easiest way to gift it is write a statement have it notarized and then give the gift. You can not control the Dinar in all most all situations that you gift. You can give the gift to the intended party or have a third party hold it in trust. If you gift under 13,000 dollars per year it does not matter. If you physically gift the Dinars to a person, they can cash it in and pay the taxes on it. Otherwise you can certainly pay the taxes and gift under 13,000 dollars without you paying a gift tax in addition to the taxes you paid on the gain of the Dinars. I am not an attourney nor a CPA, this is just knowledge I have gained from this site. Link to comment Share on other sites More sharing options...
sambob Posted June 22, 2011 Author Report Share Posted June 22, 2011 Thank you, Kanga. This I understand but I'm hoping to find out how the IRS determines the value at the time of the gift (CBI rate that day or receipts showing what we paid). Sorry, this is a little confusing... Link to comment Share on other sites More sharing options...
Jamie in Bama Posted June 22, 2011 Report Share Posted June 22, 2011 I know that for stocks value of gift is based on published rate on date of gift. Basis of gift, (the amount recipient has to report for tax purposes is based on what u actually paid) At least that was the way it worked last time I had to do this. Of course I am neither CPA or Attorney & you should check to be sure. If you want to do gift now I suggest getting a notarized gifting letter done now, you don't have to physically hand over the dinar til you are ready but I think you can lock in the date (document wise that way) That is how I am doing it, so I suppose I aught to verify that it will work as I expect it will as well. Link to comment Share on other sites More sharing options...
sambob Posted June 22, 2011 Author Report Share Posted June 22, 2011 Yikes! That is what I was afraid of. The amount I listed on one of my notariized gift letters is fine if I go by CBI rate but puts me over if I go by amount paid. Shoot! Guess I'm going back to the bank. Better to be safe than sorry! I'll have to divide them up between my husband and I and list smaller amounts. Thanks, again! Link to comment Share on other sites More sharing options...
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