2006-12-10 02:19:47 · 6 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
waggy_33's answer is partially accurate. Gifts over the annual exclusion amount require filing a gift tax return. Their is a ';unified credit' that shields approx. $1,000,000 of lifetime reportable gifts from gift taxes.
To directly address you question, gifts to individuals are never deductible. It doesn't mater if the are dependents, relatives, or none of the above.
2006-12-10 04:55:16 · answer #1 · answered by STEVEN F 7 · 1⤊ 0⤋
You can make a gift to anyone you choose. There may be some limitations on how much you can deduct for a family member. It would be best to consult a CPA or tax professional. You might also talk with the IRS. They have publications available on line you can access by going to their website. Most can be downloaded. www.irs.gov/formspubs.
2006-12-10 02:27:40 · answer #2 · answered by Flyby 6 · 0⤊ 1⤋
The person giving the gift pays a gift tax on any amount given to any one person in excess of $12,000 in a calendar year. If both parents are alive you can give each of them $12,000 without paying a gift tax.
The person receiving never includes the amount received in their income.
2006-12-10 03:20:59 · answer #3 · answered by waggy_33 6 · 1⤊ 0⤋
Gifts are not deductible from your income taxes no matter who you give them to. Charitable contributions yes, gifts to family and friends; no.
2006-12-10 04:05:45 · answer #4 · answered by zudmelrose 4 · 1⤊ 0⤋
I believe they are, as long as the recipient claims them as gift income on their tax returns. This may affect their bracket adversely, though, so I would definitely consult your tax advisor before doing something like that...
2006-12-10 02:23:55 · answer #5 · answered by gfunk 2 · 0⤊ 3⤋
NO, but they don't have to report it on THEIR taxes unless you gave them over $22,000.
2006-12-10 02:22:52 · answer #6 · answered by KC 4 · 0⤊ 1⤋