If A gifts cash to B, and B gifts property to A (value of property = value of cash), is this considered a wash?

and therefore, neither requires a drawing down of A nor B's gift tax credit? Or would both A and B have to report this gift and draw down their own gift tax credit?|||No consideration of gift tax at all. A is paying for the fair market value of the property from B.





"What is considered a gift?


Any transfer to an individual, either directly or indirectly, where full consideration (measured in money or money's worth) is not received in return."|||A gift is only a gift if the gift giver expects nothing in return. What you propose is a sale. If what B gives A has increased in value since B bought it, the gain may be subject to capital gains tax unless B meets requirements for some exclusion (like principal residence for 2 of past 5 years).|||They would be separate and independent gifts, so if either or both was large enough to trigger reporting or gift tax payment, the other wouldn't make any difference.|||There is no gift at work here. A is buying property from B. The sale may have its own tax issues (especially for B right now) but there's no way that this is two mutual "gifts."|||No.