Can my 2 year old child gift money to my parents according to IRS rules?

I would like to gift some money to my parents to help them pay for their new house. According to IRS rules, the maximum that any individual can gift to another individual is $12,000. Therefore, I, myself, can clearly gift $12,000 to my parents.





Can my 2 year old daughter legally gift another $12,000 to my parents?





Thanks!

Can my 2 year old child gift money to my parents according to IRS rules?
Your 2-year old cannot give property that he does not own, and he is not competent to understand anyway.





However, you can give $12K to each parent each year and not have to file a gift tax return. You could give them $24K, and then loan them additional money, and then forgive that loan next year, at which time it becomes a gift.





Even if you give them more than $24K in one year and have to file a gift tax return, you almost certainly will not owe gift tax. The gift tax return keeps track of your lifetime gifts for purposes of computing estate taxes.
Reply:No she cannot. You are her guardian and she is your dependant. Unless she files her own income taxes, she cannot gift the money.


Perhaps a good way to go is to include yourself on the deed to the house as part owner and then ....you would actually benefit from the purchase tax wise and your parents would have their home.
Reply:if you are married, your HUSBAND can also gift 12K . . . (just thot I'd make the answer a tad more PC).





I'm thinking that a gift requires "intent" and i doubt that a 2 year old would want to give 12K to someone else.
Reply:no because your 2 year old has no income
Reply:Not unless it was her money to give. To attempt it otherwise could be construed as evading the gift tax, and you don't want to be in trouble for tax evasion. You could always loan them the money instead. You could also gift them $12,000 in December and another $12,000 in January.
Reply:$12,000 is the amount an individual can gift without reporting it. You can gift higher amounts but are required to report it on a gift tax return. It won't cost you any tax at this time if your cumulative reportable gifts are less than $1,000,000.


However, the reportable amounts will reduce your estate tax exemption.
Reply:does your 2 yr old have that much money?





if you are married, your wife can gift $12K to your parents if that would help.

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