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Chris gave Tara, her non-citizen spouse, real estate that has an appraisal value of $800,000. It...

Chris gave Tara, her non-citizen spouse, real estate that has an appraisal value of $800,000. It was Chris’s only taxable gift for this year. In 2015, he gave her his XYZ stock that is worth $200,000. How much would be reported each year as a taxable gift?
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Answer #1

The unlimited marital deduction allows to gift any amount of money or property to your spouse without incurring either the federal gift tax or a state gift tax if you live in a state that imposes one.

This is contingent upon her being a U.S. citizen, however.

There is annual exclusion from gift taxes for gifts specifically made to non-citizen spouses. You can give this much per year without incurring the gift tax, which can add up considerably over a lifetime, effectively making citizenship a non-issue over the long term. With respect to annual exclusion gifts to non-U.S.-citizen spouses, the amount was $147000 in 2015.

Therefore $ 53000 (200000-147000) would be reported each year as a taxable gift.

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