Posted by admin on 4 Feb 2008 7:25 pm. Filed under United States.
vmsergei asked:
So my parents don’t work & got some cash stocked away in hi-yeld interest accounts. They made about 30K on their investments last year in interest income. What is the best way to reduce their taxes? Is giving 10K to their grandchild going to have an effect on their taxible income?
On February 5th, 2008 at 10:10 pm
Not directly, but they will not have to pay tax on the future earnings of that 10K (although the grandchild might).
On February 7th, 2008 at 2:33 pm
It will have no effect on their income. Gifts to relatives are not deductible