i got married in september 2006. my wife gave me a cash gift of $20,000. my question is:
1) will that be taxed?
2) do we have to report that on our tax return? if so what form do we use?
thanks
2007-02-11 12:06:40 · 5 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
In community property states, it's not even a gift in the eyes of the IRS. In other states, spouses are specifically excluded from gift taxation.
2007-02-11 12:17:26 · answer #1 · answered by Rob D 5 · 0⤊ 1⤋
Do you live in a community property state? Was the $20K earned by your wife when she was married to you? If you file a gift tax return (and I don't know if you need to or not) then file Form 709.
2007-02-11 12:25:00 · answer #2 · answered by Melissa O 2 · 0⤊ 0⤋
Gifts to spouses are never taxable. So you can go out and get your wife that 10 karat diamond tennis bracelet from Tiffany's and she can go out and get you that new Porsche and there is no gift tax involved.
2007-02-11 13:00:31 · answer #3 · answered by jseah114 6 · 0⤊ 1⤋
1) No. Transfers between spouses are not taxable events.
2) No. You do not report gifts to a spouse.
2007-02-11 12:28:44 · answer #4 · answered by ninasgramma 7 · 0⤊ 1⤋
Once you got married is is no longer seperate money, it is joint. If she took money out of a fund that is soley hers then it is a gift and you pay tax.
2007-02-11 12:10:37 · answer #5 · answered by ttpawpaw 7 · 0⤊ 1⤋