10K gift to reduce taxes from investments for non-working parents?

Posted by admin
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?

EUGENIO
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This entry was posted on Friday, December 4th, 2009 at 8:17 am and is filed under United States. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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2 Responses to “10K gift to reduce taxes from investments for non-working parents?”

  1. JERROD Says:
    December 5th, 2009 at 12:03 pm

    YOUNG

    Not directly, but they will not have to pay tax on the future earnings of that 10K (although the grandchild might).

  2. JACK Says:
    December 6th, 2009 at 7:35 am

    SAM

    It will have no effect on their income. Gifts to relatives are not deductible