2006-11-27 04:22:33 · 6 answers · asked by Mike S 1 in Business & Finance ➔ Taxes ➔ United States
If it is a true gift, there are no tax implications for you. If the amount is mare than the annual exclusion amount (currently $12,000/person/yr), the giver will have to file a gift tax return. There is a 'unified credit' that exempts $1,000,000 of reportable gifts from tax over the donors lifetime. If they can afford to give away more than that, they can afford a tax attorney to help them do this properly.
2006-11-27 11:23:37 · answer #1 · answered by STEVEN F 7 · 0⤊ 0⤋
If you were given the money as a gift, the giver might need to file a gift tax return and pay (depending on the amount of the gift and the relationship of the giver.). You would not have a tax implication.
If the money was given as a loan and you fail to repay it, you would owe tax on it as a forgiveness of debt.
2006-11-27 16:26:16 · answer #2 · answered by Andreas 3 · 0⤊ 0⤋
Depends on the sum. I there is a figure, I think about $10,000, that you can be given tax free. I believe it has to be claimed as a gift.
2006-11-27 12:30:55 · answer #3 · answered by tessasmomy 5 · 0⤊ 0⤋
None to you. The person giving the money might have to pay a gift tax
2006-11-27 12:31:33 · answer #4 · answered by waggy_33 6 · 1⤊ 0⤋
This is a gift to you. You don't have to pay taxes on it. You do, however, have to pay taxes on any money that you earn on it. So, if you invest it or put it into a bank account, you have to claim the interest on it.
2006-11-27 12:50:30 · answer #5 · answered by LaLa 6 · 0⤊ 0⤋
Not sure how it works in america exactly but ya id imagine u should have 2...basically u have to pay tax on all money you receive!!!
2006-11-27 12:31:25 · answer #6 · answered by marky_fightthepower 4 · 0⤊ 1⤋