I will be receiving a number of financial gifts over the next few years and am wondering if a gift given today (or in Feb/March?) would still be eligible for the 2006 tax year.
Much as with an IRA you can contribute money in early 2007 to reduce your 2006 income, can you use this same strategy for financial gifts?...have a gift of $10,000 today be counted towards that person's gift limit to me for 2006?
2007-01-26 09:01:32 · 9 answers · asked by Pigg 1 in Business & Finance ➔ Taxes ➔ United States
12/31
2007-01-26 09:09:41 · answer #1 · answered by Anonymous · 2⤊ 0⤋
Bona-fide gifts are not taxable to the recipient. The giver pays the gift tax. The date that the gift is given determines the year that the gift tax exemption applies to so any gift given during 2007 counts to the exemption for 2007.
Therefore, you don't need to worry about any tax consequences yourself, only the giver does.
2007-01-26 09:40:24 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Right guys! Gifts are taxed to the giver. BUT, each individual (MOM and DAD count as 2 people) can give $12000 tax free each calendar year to another person. And it's better. Each person has a lifetime $1Million exemption on top of that. So unless your friends and family are gifting you lots (in which case I am available for gifts...) nothing that matters financially will happen.
2007-01-26 10:06:22 · answer #3 · answered by WealthBuilder 4 · 0⤊ 1⤋
No, gifts are counted in the year they are actually made. And they don't affect your income tax anyway, although you might have to file a gift tax return and possibly pay gift taxes. A gift given today would count toward the 2007 limit.
Gifts are not deductions and don't reduce your income for tax purposes.
2007-01-26 09:11:46 · answer #4 · answered by Judy 7 · 0⤊ 2⤋
April 15, 2007 and could be postmarked earlier ineffective night April sixteen, 2007. Get in line on the placed up workplace. They stay open till ineffective night on submitting day. If mandatory, you are able to touch the IRS and request an extension yet you're able to pay a fee. Oh wait, the fifteenth is on a sunday so it in all probability is the seventeenth, like everyone else says. My undesirable! yet you will request an extension in case you're able to.
2016-12-16 14:18:30 · answer #5 · answered by ? 4 · 0⤊ 0⤋
December 31, 2006
But I don't understand how recieving a financial gift would lower your taxes???
If the gift is above a certain amount, ( i dont remember what that is now, but it used to be $10,000) you have to PAY taxes on it.
2007-01-26 09:30:47 · answer #6 · answered by Anonymous · 0⤊ 1⤋
Nope, sorry you need to go by the calendar year. 12/31/2006 is the last day.
2007-01-26 09:13:09 · answer #7 · answered by Celt 3 · 0⤊ 0⤋
dec 31st, 2006
2007-01-26 09:11:29 · answer #8 · answered by pooh 6 · 0⤊ 0⤋
12/31......Calendar year
2007-01-26 09:10:15 · answer #9 · answered by Wayne Z 7 · 0⤊ 0⤋