I always assumed the gift tax was payed by the reciever for anything over $10,000. Someone just told me that if my wife and I each gift our daughter $10,000, nobody payes taxes, niether us nor her. Is that true?
2006-11-30 17:37:54 · 13 answers · asked by alan p 1 in Business & Finance ➔ Taxes ➔ United States
For 2006, that amount went to $12,000 per "person-to-person" transaction. You could give your daughter $12,000 and your wife could give your daughter another $12,000. Nobody pays taxes.
Even if you gave more than this amount, you won't necessarily pay taxes. You would have to file a Form 709 "Gift Tax Return", but unless you gave over $1,000,000 in your lifetime, there would be no tax due. The recipient of a gift never pays tax.
2006-11-30 23:46:09 · answer #1 · answered by TaxMan 5 · 2⤊ 0⤋
Tell your wife what she did was really unfair. Getting a dog needs the approval of every family member because it affects everyone in the house. The fact that she didn't say anything because she knew you'd disapprove is absolutely sneaky and wrong. Your daughter and wife need to care for the dog and make sure it doesn't make a mess. The most you can do is try to make friends and fall in love with it.
2016-05-23 07:06:12 · answer #2 · answered by Anonymous · 0⤊ 0⤋
First, there is a legal concept called gift splitting whereby you and your wife may split a gift of $22,000. The annual minimum for gift tax purposes is $11,000 in 2006 so by splitting a $22,000 gift there would be no taxable gift (assuming all parties are US citizens). For gifts above that, you have to file a gift tax return, Form 709, but no tax is due until you have made cumulative taxable gift over your lifetime in excess of $1 million. And yes, the gift tax is an excise tax on transfers and must be paid by the giver.
2006-11-30 18:45:48 · answer #3 · answered by mattapan26 7 · 1⤊ 2⤋
The gift tax exclusion this year (2006) is $12,000 per person. You and your wife can give your daughter up to $24,000 this year without tax consequences for any of you. See my link for more info.
2006-11-30 18:48:37 · answer #4 · answered by teehee 3 · 2⤊ 0⤋
Yes. Actually, at the moment the limit is a bit higher -- $12,000, I think. Over that limit, the giver has to deal with the tax.
2006-11-30 17:43:11 · answer #5 · answered by Anonymous · 2⤊ 0⤋
If you have that kind of money to give away, you can surely afford to pay a tax accountant a few bucks to give you the correct answer.
Not being mean...it just isn't worth the gamble going with a wrong answer.
2006-11-30 17:41:13 · answer #6 · answered by maamu 6 · 0⤊ 1⤋
The law is that each of you can gift up to $10,000.00 per year. Above that there is a tax which your daughter would have to pay.
This is what it was when I last heard about it in my family. You may want to call the local IRS office.
2006-11-30 17:53:05 · answer #7 · answered by Susan M 7 · 0⤊ 3⤋
I think you need to get,"that smart banker that killed his wife"... The Shaw Shank Redemption...
Anyway, I think it makes sense...could u maybe toss me one of those tax deductible gifts, for christmas???
DJ
2006-11-30 17:43:35 · answer #8 · answered by gemseeker 3 · 0⤊ 0⤋
If this is a real tax, it is ridiculous.
To get around it, just give her a money order, or withdraw it and give it to her. Or take it from your bank account, and start one for her at that same bank with the 10,000. Or just give her 5000 one week, and 5000 the next.
Or you can just wire me the 10 Gs :).
2006-11-30 17:40:55 · answer #9 · answered by hey2a 3 · 0⤊ 5⤋
I beleive so, if you gift it seperately.
For example, you give her 11000, then your wife gives her 10000. Double check with the IRS for specifics.
2006-11-30 17:41:12 · answer #10 · answered by techie_girl 2 · 0⤊ 3⤋