This money will be given back to my mom after some time. I will not be using this money in anyway shape or form.
2006-11-07 05:24:37 · 5 answers · asked by dr. answer 1 in Business & Finance ➔ Taxes ➔ Other - Taxes
YES. Money is in your account so it's yours (as far as IRS is concerned). Any interest earned in the account will be reported and taxed.
2006-11-07 05:27:28 · answer #1 · answered by fastfrank7 5 · 0⤊ 0⤋
There is no tax consequences to you for receiving the money. While it is your bank account you will be responsible for any interest that the money may earn. When you give it back there will be no tax consequences to you unless you are giving her the interest and the total amount exceeds $12,000. In that case you will be required to report the gift but it will only make a difference if you die with an estate in excess of 2 million dollars.
2006-11-07 05:46:46 · answer #2 · answered by ? 6 · 0⤊ 0⤋
I think that if you called it a loan you wouldn't have to pay taxes or there may be a clause for a one time gift. You do have to report the interest. Just have your mom pay you back the amount you pay in taxes on the interest.
2006-11-07 05:37:03 · answer #3 · answered by Phoenix, Wise Guru 7 · 0⤊ 0⤋
No the $10,000 is not earnings to you. You will have to pay tax on any earnings on the account if you use your social security number. If this is being done for Medicaid purposes you might be a party to Medicaid Fraud. If she is trying to protect her assets in general there are much better ways to accomplish this.
2006-11-07 06:01:26 · answer #4 · answered by waggy_33 6 · 0⤊ 0⤋
There may be one caveat.......
If you intend on giving it back, it could be deemed a loan and not a gift. While loans are not taxable either, If the IRS wanted to, it could impute interest income to your mom. "Gifts" should come with no strings attached and no expectation of repayment.
2006-11-07 06:13:15 · answer #5 · answered by Wayne Z 7 · 0⤊ 0⤋