What are the tax laws on an individual giving another individual a "once-in-a-lifetime" monetary gift (I can give one specific person a monetary gift (of any value) once in my life and it will be tax free)? Is this correct?
2007-03-13 15:10:19 · 4 answers · asked by Robert S 1 in Business & Finance ➔ Taxes ➔ United States
Do you mean tax free for you? As far as I know, you can give another person up to $12,000 per year without being taxed. If you give more, you do have to pay gift taxes on that money.
I'm googling "once in a lifetime" monetary gift and see quite a few hits. Perhaps it would help you to do a search.
2007-03-13 15:25:52 · answer #1 · answered by Anonymous · 0⤊ 3⤋
No it's not true, but for practical purposes for most people, it would be. You can give gifts totalling a million dollars and exclude them from gift tax.
There's no "once in a life time" gifting rule.
A gift from any person to another person doesn't have to be reported if the amount is under $12,000 for the year.
Note: a person receiving a gift doesn't pay tax on it in any case - the donor does if it's large enough. And "tax free" doesn't mean that you can deduct the gift from your taxes, just that you don't pay gift tax on the giving of it.
2007-03-13 15:52:33 · answer #2 · answered by Judy 7 · 1⤊ 0⤋
If you exceed the $12000 limit the excess goes against your estate tax limit. That is a "total in your lifetime + death" limit.
2007-03-13 22:12:52 · answer #3 · answered by CarVolunteer 6 · 0⤊ 0⤋
barberry is correct however if your married then you and your wife can each give 12,000 so in total any gift that will be more then 24,00o will be taxed.
2007-03-13 15:42:12 · answer #4 · answered by Ski_Bum 3 · 0⤊ 3⤋