My father-in-law resides in Italy. If he gives my wife the $$$, and my wife gives me the $$$ as a gift. Will I have to pay taxes??? Will my father-in-law have to pay gift tax???
2007-05-31 07:56:20 · 5 answers · asked by RJ 1 in Business & Finance ➔ Taxes ➔ United States
My father-in-law is Italian (Not American/Never been to the States).
2007-05-31 08:45:13 · update #1
What if I bought a house with this money???
2007-05-31 08:45:53 · update #2
In the U.S., the recipient of a gift does not pay taxes on the gift. The reason behind this is the giver has already paid or will pay taxes on their income and is the better person to handle the tax consequences. Since you are married, if he gives the $$$ to your wife, there is no need for your wife to give you the money. As far as the IRS is concerned, the money was given to both of you, especially if you file "married, filing jointly".
Since your father-in-law lives in Italy, he will have to check with Italian taxation authority on his responsibility for taxes. He does not owe taxes to the U.S.
One last thing, how do I become a part of this family? :)
.
2007-05-31 14:55:11 · answer #1 · answered by NGC6205 7 · 1⤊ 0⤋
You won't have to pay tax - the recipient of a gift doesn't report it, or pay tax on it.
If your father-in-law isn't a US citizen or resident, he is not subject to the requirement to file a gift tax return. If he's a US citizen and is just living in Italy, then he would have to file, but probably wouldn't owe a gift tax on it if he uses part of his lifetime exemption.
2007-05-31 08:01:23 · answer #2 · answered by Judy 7 · 4⤊ 0⤋
No taxes for you. Your father-in-law may have to pay gift tax in Italy - he should check with a CPA over there.
2007-05-31 10:24:25 · answer #3 · answered by spicertax 5 · 1⤊ 0⤋
you will pay a latest tax of a share of the fee of the domicile. it truly is extra clever for him to sell it to you (if he owns it) for a greenback. which you you will pay taxes on the greenback. (you may flow extra realistically like $25,000, or how ever you like.) component is, you would be paying plenty in taxes if the home is of extreme fee.
2016-10-09 05:05:30 · answer #4 · answered by Anonymous · 0⤊ 0⤋
thats a bit tricky there .. I say yes pay the taxes .. lot of hands being passed throw there .. but I have heard you can write off a one time gift .. do ya really want it to be the 200,000 .. I say ask a CPA ..
2007-05-31 08:01:23 · answer #5 · answered by KxFx 3 · 0⤊ 8⤋