2006-09-26 14:49:05 · 6 answers · asked by big_joker_06 1 in Business & Finance ➔ Personal Finance
The free gift tax limit used to be 10k. now it is 12K. If you and your spouse give, you can collectively give 24K in a year.If you two give to a married couple, 48K. If you give more than the limits, you have to file a gift tax return. You may or may not have to pay a tax on the gift, depending on the amounts and when the gift is given. The law here is changing almost every year.
2006-09-26 14:59:18 · answer #1 · answered by world traveler 3 · 0⤊ 0⤋
Up to $11,999 can be given w/o paying taxes, as a "gift" However, both you and them must show the gift on your tax returns. Also, if you are filing for bankruptcy, or give the "gift" in the 12 months prior to filing, the court can force them to return any funds given to them over $500, to pay back your creditors.
2006-09-26 22:00:33 · answer #2 · answered by Randi L 5 · 0⤊ 0⤋
Be aware that ANY gift.... even if it falls under the $12,000 taxable limit... has to be claimed at tax time (by BOTH parties) though no taxing of it will be done. There must be a paper trail !!
2006-09-26 21:57:31 · answer #3 · answered by Kitty 6 · 0⤊ 0⤋
Yes, it's called a "gift tax" you are supposed to claim it, if the gift is over $10,000 for any one person then you pay a tax on it. Not them
2006-09-26 21:50:56 · answer #4 · answered by roamin70 4 · 0⤊ 0⤋
I think you are allowed to give untaxed "gifts".
2006-09-26 21:50:52 · answer #5 · answered by m l 1 · 0⤊ 0⤋
More than 10k? Yes.
2006-09-26 21:51:04 · answer #6 · answered by Anonymous · 0⤊ 0⤋