mik82

First off anyone is allowed to legally gift anyone else $13,000 without a gift tax being triggered and it doesn't go towards lifetime gifting exceptions....so anything below that amount is irrelevant. A mother & father could therefore legally gift $52K to a son and dauther inlaw for example (each person gives each $13K). It honestly comes down to whether it is a traceable transfer. Can the IRS trace what you did with $100,000 cash? Maybe. Could they trace a paper check? Most likely. Can they prove someone bought the furniture for you? doubtful, but if they wanted to be a pain. Change furniture to car and you'd have trouble as there is a long paper trail.

Remember anyone can give anyone $13,000 (current limit, but it goes up)....so who is to say a parent couldn't give their maximum amount to their child and then$13,000 to a good friend and low and behold that good friend decided out of the goodness in their heart to turn around and gift it to the same child.