monetary gift


K

Ken Hansen

How much can be recieved as a gift before it is taxable and
if over the limit is the whole amount taxable or just the
amount over the limit?
 
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J

joetaxpayer

Ken said:
How much can be recieved as a gift before it is taxable and
if over the limit is the whole amount taxable or just the
amount over the limit?
$12,000 per person combination. e.g. a couple may gift their
married child (and spouse) 4 x $12,000 = $48,000.

Only the amount over is an issue. Either gift tax must be
paid or a credit against one's lifetime gift exemption.

JOE
 
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P

Phil Marti

Ken Hansen said:
How much can be recieved as a gift before it is taxable and
if over the limit is the whole amount taxable or just the
amount over the limit?
Gifts, regardless of amount or source, are not taxable
income to the recipient. See Publication 525.

Gift tax is the responsibility of the donor, not the
recipient. The 2007 limit for gifts exempt from gift tax is
$12,000 per donor/recipient.
 
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B

Bob Sandler

How much can be recieved as a gift before it is taxable and
if over the limit is the whole amount taxable or just the
amount over the limit?
You can RECEIVE any amount as a gift, and you do not have to
pay tax on it. There is no limit.

The person who GIVES the gift has to file a gift tax return,
and may have to pay gift tax as joetaxpayer described, if
they give more than $12,000 to any one person.

Bob Sandler
 
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M

Missy

Ken said:
How much can be recieved as a gift before it is taxable and
if over the limit is the whole amount taxable or just the
amount over the limit?
There is no limit to the one who receives the gift. The
limit for the donor is $12,000 per person, per year without
filing a gift tax return. If a couple whats to gift a
married child money they can gift the couple a total of
$48,000 per year as the rule is any one person can gift any
one other person $12,000 per year.

Missy Doyle
 
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P

Paul Thomas, CPA

Ken Hansen said:
How much can be recieved as a gift before it is taxable and
if over the limit is the whole amount taxable or just the
amount over the limit?
It depends on who receives the gift. Me, I'd not have to
pay tax on the first billion or so. Well, actually you
wouldn't either. Gifts (for the most part) are not income
to the recipient no matter how large they are.

The person making the gift may be liable for filing a gift
tax return for any annual gifts to a single individual when
that amount exceeds $12,000 (for 2006).
 
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