USA Please help!! Desperate Tax Question

[Ozzyboy]

Hello All,

First off, this senario takes place in the United States. We live in California.... I was buying a house and needed additional reserve funds in order to qualify for my loan. My parents put these funds ($100,000) into my checking account temporary in order to avoid any gift taxes. I later returned the funds before the end of the calendar year. However, while it was in my account I transferred the money into my etrade account and purchased various stocks. I held these stocks for several months. A small loss was taken. My question is, because I purchased equities and these purchases and sales are sent to the IRS during my tax return, will this now cause either of us to have to pay taxes? Will it raise any flags to all of a sudden show that much money? I'm really worried I screwed up and now my parents might get stuck paying 30% gift tax. I'd greatly appreciate any insight into this matter.

Thank you!!

 

[kirby]

I assure you your concerns over gift tax will vanish.
Because you now have bigger problems.
It should have occurred to you that stating that the $100K was yours was a lie.
So know that filing a false credit application to certain entities , usually banks and credit unions, is a huge crime. I mean huge penalties and prison.
See, now your concern over gift tax is lessened!
So let's go there: only you and your parents knew if that was a gift or a loan.
And you have since repaid it, so...... No gift! Just a loan.
Now, let's THINK for a moment about you putting their money at risk in the stock market without their OK.
You could have lost it all.
"Hey Mom and Dad, you know that $100k you lent me that you were going to retire on?
Well, do you take IOU's??

You were lucky, so far. Dim, but lucky.