Gift Tax in Community Property State

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confusedtaxpayer
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Joined: Thu Jul 23, 2020 2:54 pm

Gift Tax in Community Property State

Post by confusedtaxpayer » Thu Jul 23, 2020 3:04 pm

Situation: Married, both are US tax residents and domiciled, non-US citizens.

The gift tax (form 709), indicates an annual exclusion ($155,000) for gifts given to non-citizen spouses. I was wondering how this applies to married residents of community property states (CA, VN, NM, TX, LA, WA, ID)

If I buy $1000 worth of stock while married, this becomes community property, in which of the following scenarios is this considered a gift to my spouse;
- the funds come from a separate account owned pre-marriage, that received no post-marriage funds
- the funds come from a community property account (account has only post-marriage funds)
- the funds come from a commingled account (account has both pre-marriage and post-marriage funds)

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