Tax on Gift from Parents?


D

DaveR

Our parents gave us money as a gift.

Am I required to pay tax on this gift?

If so under what circumstances would I not be liable for
such taxes?
 
Last edited by a moderator:
D

Dick Adams

DaveR said:
Our parents gave us money as a gift.
Am I required to pay tax on this gift?
No, recipients do not pay taxes on gifts. However, it would
be really cool if your parents adopted the Moderator of this
mewsgroup.
 
Last edited by a moderator:
Ad

Advertisements

H

Herb Smith

DaveR said:
Our parents gave us money as a gift.

Am I required to pay tax on this gift?
The RECIPIENT of a gift does not owe tax. The donor may be
required to file a Gift Tax return (form 709) if the gift
exceeds $11,000 per recipient in a given year.
 
Last edited by a moderator:
P

Phil Marti

DaveR said:
Our parents gave us money as a gift.
Am I required to pay tax on this gift?
No. Gifts are never taxable income. All you're required to
do is encourage generosity with a nice thank-you note.
 
Last edited by a moderator:
B

Bob Sandler

Our parents gave us money as a gift.
Am I required to pay tax on this gift?
No, you do not have to pay tax on the gift. Gifts are not
taxable income to the recipient. You do not even report it
on your income tax return. Of course, once the money is
yours, any interest or other investment income that you
subsequently earn on it is taxable income to you, just like
any other investment income.

If either parent gave more than $11,000 to any one
individual, then that parent has to file a gift tax return.
Whether or not the parent has to pay any tax depends on the
total amount of the gift and whether there were any previous
gifts. For gift tax purposes, a gift is always considered to
be from a single individual to another single individual,
not from both "parents" to "us." If more than $11,000 is
involved, your parents might want to consult with a tax
professional. But this is their concern, not yours.

Bob Sandler
 
Last edited by a moderator:
R

Rich Carreiro

DaveR said:
Our parents gave us money as a gift.
Am I required to pay tax on this gift?
No, assuming it is a bona fide, no strings attached gift.
 
Last edited by a moderator:
Ad

Advertisements

D

David Woods, EA, ChFC, CLU

DaveR said:
Our parents gave us money as a gift.
Am I required to pay tax on this gift?

If so under what circumstances would I not be liable for
such taxes?
Donees do not pay tax on gifts.
 
Last edited by a moderator:
J

JoeTaxpayer

DaveR said:
Our parents gave us money as a gift.

Am I required to pay tax on this gift?

If so under what circumstances would I not be liable for
such taxes?
No, the recipient is not liable to pay the gift tax. 11K per
year per person, i.e. your parent can give you $22k, they
can you and your partner $44K per year.

There are [rare] circumstances where if the giftor doesn't
pay the tax, the IRS can still come after you, but only
under specific conditions, I believe purposeful fraud must
be involved.

JOE
 
Last edited by a moderator:
M

Missy

You would never have to pay tax on a gift given to you. Any
one person may give up to $11,000 per year to any one other
person without reporting the gift. After that amount, the
donor (parents in this case) would have to fill out a gift
tax return and may or may not have to pay tax on it
depending on the amount of the gift and gifts in the past
years.

Missy Doyle
 
Last edited by a moderator:
Ad

Advertisements

I

Ivan Erwin

DaveR said:
Our parents gave us money as a gift.

Am I required to pay tax on this gift?

If so under what circumstances would I not be liable for
such taxes?
To recap the info already given you. You said "us." Your
mother can give you $11,000 and the other person $11,000 and
your father can do the same each year with basically no tax
consequences to them. (And none to you even if it is
$millions.)

In addition, they can pay some bills for you such as college
tuition and medical bills as long as they pay them directly
to the institution.

Ivan
 
Last edited by a moderator:

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Top