2006-10-29 06:02:36 · 4 answers · asked by Clin 1 in Business & Finance ➔ Taxes ➔ United States
The U.S. Federal Government has no such thing as a gift tax on the recipient. Bill Gates can give you $1,000,000 and you would owe the IRS nothing! There is a gift tax on the giver, but not the recipient. The giver has to file a gift tax return (709) anytime they give someone more than $11,000. Simply having to file the return doesn't mean they owe tax. They would have to give away over $1,000,000 before they would owe tax. But if they give more than $11,000, they have to fill out the 709. If you really want to give someone more than $11,000, it is best to just give them $11,000 and give another $11,000 to their spouse and another $11,000 to their kid, etc. Or, give them $11,000 each year. Money given as a gift paid directly to a educational institution or medical establishment is exempt from gift tax, as is gifts to charitable organizations. So, if someone wanted to give you $20,000 and you had medical bills, have them pay the medical bills directly.
Hope this helps :)
2006-10-29 06:15:18 · answer #1 · answered by TaxMan 5 · 1⤊ 2⤋
Up to $11,000 and don't worry. Over $11,000 and either the person who gets it pays or the person who gives it pays. The person who gives the money is responsible for making sure it's legit.
2006-10-29 06:25:27 · answer #2 · answered by Nomadd 7 · 0⤊ 2⤋
I dident know you had to pay taxes on gifts aswell, jesus!
2006-10-29 06:05:23 · answer #3 · answered by Anonymous · 0⤊ 0⤋
i dont think you have to pay taxes if its a gift. but i think (like 10 years ago) i think i heard it was like 500 bucks?
2006-10-29 06:10:28 · answer #4 · answered by LS 5 · 0⤊ 2⤋