2

In 2017, I sent about 60+ gift transactions of about $50-$500 to a friend in Australia to help pay for her bills using Paypal. The total for the year was about $14,800, so I know I need to fill out the gift tax for each of those transactions.

However, in the middle of the year, I opened a new bank account and closed my old account. I don't have the records from my old bank account, but I have the records on Paypal. The dates have a 1-3 day difference because of processing time.

So should I retrieve the old records from my previous bank, or can I just use Paypal dates for the transactions I don't have?

2

In my unprofessional opinion, the PayPal dates are good enough. You could even argue that the PayPal dates are the best dates to use: when the money transfers from your bank to your PayPal account, it is still yours, and the gift doesn’t happen until the money leaves your PayPal account for your friend’s account. I doubt that the IRS will care if your dates are offset by a day or two anyway.

However, if any of your gifts spanned across a year boundary (such as initiating a gift on Dec 30 that arrived on Jan 1), you might want to take a closer look at the dates.

  • I do have a $700 gift that was initiated on December 30th (Paypal date) and left my bank account on January 3rd (Bank date). I didn't think the dates would be that important either, except for the year boundary dates. Do you think the earlier Paypal date will suffice? – Bleu Apr 7 '18 at 21:03
  • Also, should I add the total of all transactions at the bottom of the Excel sheet that I'll send to the IRS? – Bleu Apr 7 '18 at 21:19

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.