The money was already taxed when I received it as income...does it get taxed again when I give it as a gift to my father?
2006-09-07 05:54:20 · 9 answers · asked by ic1212 2 in Business & Finance ➔ Taxes ➔ United States
The person giving the gift pays the tax (via form 709 (linked below)) if any. You can legally give anyone up to 12,000 in 2006, with your spouse able to give up to 12,000 as well. And if the person you're giving the money to is also married, you and your spouse could give up to 48,000 tax free (you give 12,000 to each, your spouse gives 12,000 to each), and this can be in one check, you don't need separate checks.
If you can, you can break it up and give him some money this year and then some money on Jan 1, 2007 if that is an option.
Check out IRS Publication 950 for more info on gifts (linked below). Check with your tax professional for more detailed questions and what is best for your situation.
2006-09-07 09:07:56 · answer #1 · answered by sjoschko 3 · 0⤊ 0⤋
Well thats a little complicated.
In 2006 you can give anyone a gift of $12,000 without any tax implications. (If your married your spouse can also gift $12,000).
You are also allowed to gift $1,000,000 in your lifetime without paying tax on it (the person giving the gift pays the tax), but you are required to file a gift tax return when gifting over $12,000 ($24,000 if your married). This return is a little beyond turbo tax and the best way to get it properly filed would be to consult with a local cpa.
hope this helps
2006-09-07 13:03:05 · answer #2 · answered by newhouse 3 · 1⤊ 0⤋
The giver pays the tax, and in this situation it would indeed be taxed.
There is an amount that you can give annually tax free. That amount used to be $10,000 but I believe it's recently gone up.
You need to see a tax expert.
2006-09-07 12:59:52 · answer #3 · answered by Oh Boy! 5 · 0⤊ 0⤋
11,000 is tax free. unless it is now 12,000. if he is married, you can give, 22,000 or 24,000 if it has gone up. maybe if you are married it doubles as well, becuase technically you would be giving 11,000 and your wife 11,000 and so on. talk to a lawyer or an accountant about the laws and particular laws in your state. becuase i believe each state has particalar clauses as well. but at any rate, it would be you paying the gift tax, not your father.
2006-09-07 14:29:10 · answer #4 · answered by chelley 2 · 0⤊ 0⤋
i dont know the answer exactly to the question. But just make him a joint on ur account and he can transferr the money you already paid taxes on, without paying more.
2006-09-07 16:02:00 · answer #5 · answered by csabrinam 3 · 0⤊ 0⤋
YES IT WILL BE TAXED!
Not shouting, but I can get mad as hell that this happens.
You can GIVE to a family member, $10,000.00 per year without tax liability.
2006-09-07 13:03:15 · answer #6 · answered by ed 7 · 0⤊ 1⤋
you can give $12000 to your father tax free..if you are married that doubles..and if your father is married you can each give him and his wife $12000..so a total of $48000
2006-09-07 13:22:30 · answer #7 · answered by Billie 5 · 0⤊ 0⤋
Yes, except for the first $10,000.
2006-09-07 12:59:43 · answer #8 · answered by DashRockwood 3 · 0⤊ 1⤋
check with a lawyer
2006-09-07 12:59:29 · answer #9 · answered by Mary 3 · 0⤊ 0⤋