It is over $15,000.
2006-08-30 07:25:59 · 11 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
Its funny all the answers you get to a question. Most have some truth to them.
First of all, "gift tax". Gift tax is a tax on the "giver" of the gift. The threshold was $11,000 in 2005, but is now indexed to inflation. It may still be $11,000 in 2006, but I'm not sure. Regardless, the "receiver" of a gift NEVER pays a tax....only the giver pays.
However, since you said "left", can we assume your brother has passed away? If so, then it is inheritance. If so, you have a few issues to be concerned with. First of all, if the entire estate is above a threshold (something like $1.5 million), then the estate may have to pay federal taxes. This tax gets taken out before you see anything. As the recipient, you do NOT have to pay any taxes on money you get from an estate...only the estate pays tax.
Finally, state laws are different than federal laws. You will have to check into the laws in your state to see how they handle estates and inheritance.
Bottom line, if your brother passed away and left you money (regardless what form it is, CD, check, cashiers check), and his estate was fairly small, you don't need to worry. If he is still alive and gave you money, he's the one responsible for taxes, not you.
2006-08-30 08:53:07 · answer #1 · answered by TaxMan 5 · 2⤊ 0⤋
I see you have already received several answers so I will not get into all the numbers but you have not yet received one correct answer on the annual gift exclusion for 2006 - It is $12,000. If your brother is alive and he gave you a $15,000 check in 2006 he will be required to file a gift tax return. However, it is highly unlikely that he will pay any taxes because he will be able on the return to show his lifetime unified credit to offset the $3000 (unless of course he has made gifts over $1 million in his lifetime). He should really consult a tax advisor if he has a large estate for some planning to reduce taxes (a real one not one in a strip mall). (Of course if he passed away this answer doesn't help you but I am sorry for your loss)
2006-09-03 04:21:38 · answer #2 · answered by FlCpa 3 · 0⤊ 0⤋
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2016-12-05 23:56:35 · answer #3 · answered by ? 3 · 0⤊ 0⤋
If he is still alive, the amount over $11,000 is subject to the gift tax. If he passed away, it won't be taxable assuming he was worth less than a couple million when he died
2006-08-30 07:32:12 · answer #4 · answered by Anonymous · 1⤊ 0⤋
If you received a $15,000 check as part of a will or a disbursement of the estate of someone who has passed away, there is no tax on it. If it was a gift from a living relative, the limit is $11,000 for Federal taxes, so you'd owe tax to the IRS on $4,000 of it.
2006-08-30 07:36:29 · answer #5 · answered by sarge927 7 · 0⤊ 2⤋
Inheritance in NOT taxable. Enjoy it!
2006-08-30 07:29:22 · answer #6 · answered by Dan W 2 · 0⤊ 1⤋
If it's an inheritance, it shouldn't be, but you need to consult an accountant or tax expert to be sure.
2006-08-30 07:29:05 · answer #7 · answered by motherknowsbest 2 · 0⤊ 0⤋
Yes.
Anything over a certain amount (depending on state) is to be turned in and taxed.
2006-08-30 07:28:43 · answer #8 · answered by Keith Perry 6 · 0⤊ 1⤋
Don't know probibly.
You should ask someone who would realy know.
A specialist.
2006-08-30 07:28:34 · answer #9 · answered by Anonymous · 0⤊ 2⤋
http://www.justanswer.com/
2006-08-30 07:31:02 · answer #10 · answered by Life after 45 6 · 0⤊ 0⤋