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I'd like to give someone a monetary gift, well under the current $14,000 Annual Gift Tax Exclusion limit; however, I'd like to send them multiple checks throughout the year. I'd heard about this in my high school economics class, and the teacher phrased it as a "yearly one time gift."

Is this okay, or must the gift be sent all at once?

Do I need to keep copies of the checks myself, or should I tell the recipient to keep copies of them?

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You can split the gifts as many ways you want. The 'one time a year' limit means that you cannot gift twice the limit in two installations and avoid the gift tax; the total value can be once per year tax free if it is not over the limit.

  • Confirmed with my Financial Advisor. I appreciate you taking the time to answer my question. – JustinP8 Aug 23 '17 at 20:29
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Gift taxes are owed by you, not the recipient, so you are the one that would need to keep copies of the checks.

  • This makes sense. There's nowhere I have to report them UNLESS they go over the $14,000 limit correct? In that case, I will pay taxes on the gift. – JustinP8 Aug 23 '17 at 17:08
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    Yup, under the 14,000 limit, there is no necessary reporting. – zeta-band Aug 23 '17 at 17:08
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    If I could mark 2 answers I would. Thank you for your helpful responses. – JustinP8 Aug 23 '17 at 20:29

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