Timing for reporting gifts over the annual free allowance of $15K.

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Not A Clue

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Dec 28, 2021, 12:39:11 PM12/28/21
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If I transfer some securities (from a brokerage firm) to someone on Dec 23rd and they leave my account on Dec 31st; but the receiving firm doesn't receive them until 1/3/2022. For compliance purpose, do I report the gift in 2021 or 2022?

And if I make a last minute wire transfer of cash (gift), does the same principal apply?

TIA

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John Levine

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Dec 28, 2021, 2:35:05 PM12/28/21
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According to Not A Clue <m8r.j...@gmail.com>:
>If I transfer some securities (from a brokerage firm) to someone on Dec 23rd and they leave my account on Dec 31st; but the receiving firm doesn't receive them until
>1/3/2022. For compliance purpose, do I report the gift in 2021 or 2022?
>
>And if I make a last minute wire transfer of cash (gift), does the same principal apply?

Whenever I do a domestic wire transfer, the sending and receiving
banks invariably report it on the same day. It's the day I made the
request if I do it before the bank's cutoff time, the next business
day otherwise. Stock transfers are more complicated and slower.

I suppose if the recipient is outside the US it could take longer.

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John Levine, jo...@taugh.com, Primary Perpetrator of "The Internet for Dummies",
Please consider the environment before reading this e-mail. https://jl.ly

Stuart O. Bronstein

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Dec 28, 2021, 2:40:05 PM12/28/21
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Not A Clue <m8r.j...@gmail.com> wrote:

> If I transfer some securities (from a brokerage firm) to someone
> on Dec 23rd and they leave my account on Dec 31st; but the
> receiving firm doesn't receive them until 1/3/2022. For
> compliance purpose, do I report the gift in 2021 or 2022?

It's the date you initiate the transfer, not when it is received by the
recipient.

> And if I make a last minute wire transfer of cash (gift), does
> the same principal apply?

Yes.

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Stu
http://DownToEarthLawyer.com
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