If a friend gives you a large sum of money as a gift, is that taxable income?

Answer 1

Lucky you! The recipient of a gift doesn't pay tax. If the gift is over $11,000, the person who gave it to you may owe gift tax. So, the good news is that you've just received money tax free. Thank your friend profusely and take him/her out for a fine dinner!

Answer 2

Gifts are not taxable income. However, what is a gift under state law is not necessarily a gift for federal income tax purposes. There must be "donative intent" and no quid pro quo. The donor should not be under any obligation to make the gift.

Some people think that calling a payment a gift makes it nontaxable. But what really matters is the intent and purpose for which it is made.

You do also have to consider potential gift tax consequences.

Answer 3

Depending on the sum, there might be a tax, but to the person giving the gift, not the person receiving it. The person receiving the gift(s) doesn't even have to report it.

A person who gives any one person gifts valued at a total more than $11,000 in one year must report those gifts, and might be liable for a gift tax. See the link below for more info.

Answer 4

Gifts are not taxable to the recipient. The must pay gift tax above a certain amount.

Answer 5

Absolutely not. There is a gift tax, but that is the liability of the giver. Plus there is an amount that can be given before it's taxed anyway. Don't worry about it.

Answer 6

Yes

Answer 7

You can receive a gift of up to $11,000 from someone without paying any taxes on it.

Answer 8

For you, no. If it's over $11,000 the giftor has to pay a gift tax (not very much or non).

Answer 9

Yup, gift tax. You can only give a certain amount every year, even to relatives.

Answer 10

Read this source. .pdf Yes depending on the amount.