need some help. my aunt from Poland has money and she would like me to keep the funds in my account so that when she comes here(about 1 month) i can transfer money to her account.she says she'll give me a little out of it. however,how would i write that in my income taxes? and would i get taxed?
thank you guys and girls!
much love from NY/NJ!
Paul~
2007-02-09 14:17:00 · 5 answers · asked by Paul 3 in Business & Finance ➔ Taxes ➔ United States
You will only be taxed on the interest your aunt's money earns while it is in your account. Just pay the taxes on the interest. Gifted money, to an extent, is tax free, you do not declare it.
2007-02-09 14:27:39 · answer #1 · answered by KingGeorge 5 · 0⤊ 1⤋
There is a maximum gift limit per year. It's definitely in the thousands, but I'm not sure if it's 5 or 10. You can check the IRS website to be sure. My grandmother helped defer some of her estate from taxation by giving us a 'gift check' each year for almost a decade, with the promise that we'd return the money if she needed it for home health care, etc. As long as the gift is below the legal limit, it won't be taxed.
2007-02-09 22:52:22 · answer #2 · answered by Mary 2 · 0⤊ 0⤋
How much money are you talking about???
If you are saying a couple of thousand, why doesn't she just bring it with her.
If you are talking a lot of money, you will run afoul of the law on not declaring money brought into the country at the least, money laundering at the most. Something doesn't ring true with your story
2007-02-09 22:28:38 · answer #3 · answered by bob shark 7 · 0⤊ 1⤋
If she gives you some money as a gift, it won't be taxed.
2007-02-09 22:21:00 · answer #4 · answered by Judy 7 · 0⤊ 0⤋
only interest will be taxed
2007-02-10 12:03:30 · answer #5 · answered by Anonymous · 0⤊ 0⤋