Do I declare money given as a gift as income?

Question

I was given money for a down payment. I know that the giver of the gift may be subject to gift tax, but do I declare it as income and pay tax on it as well?

Answer 1

Properties received from the generosity of another, such as gifts, are excluded from income under Section 102 of the Internal Revenue Code. The motive of the donor, however, is critical in characterizing receipts as gifts.

Regarding your statement that the giver will be subject to gift tax (assuming that the amount given you is above the available annual exclusion of $12,000) and he filed the necessary return, then this would be a strong indication of that motive of the donor required under the said section 102, and this will work in your favor.

Answer 2

The gift tax applies to the transfer by gift of any property.
You make a gift if you give property (including money), or
the use of or income from property, without expecting to
receive something of at least equal value in return. If you
sell something at less than its full value or if you make an
interest-free or reduced-interest loan, you may be making
a gift.
The general rule is that any gift is a taxable gift.
However, there are many exceptions to this rule.
Generally, the following gifts are not taxable gifts:
• Gifts that are not more than the annual exclusion
for the calendar year,
• Tuition or medical expenses you pay directly to a
medical or educational institution for someone,
• Gifts to your spouse,
• Gifts to a political organization for its use, and
• Gifts to charities.

Answer 3

I'm guessing you're talking about US income taxes.

Gifts are not taxed to the receiver. But it has to be a true gift, without any compensation. Like a promise to repay "when I can", or "I'll take care of you when you're old", or anything of value at all -- then it's not a true gift.

Love, honor, thanks and affection are not things of value to the IRS, so you can give those back.

Answer 4

You are allowed to give up to $12000. to a person as a gift. A married couple can give $24000. total in one year to that one person before they have to file a return. Say they gave you $100000. the $76000. excess can be filed as an advance against your inheritance. The giver files - not the receiver. oops my bad - I was thinking of the double gift that is allowed to the spouse also - essentially doubling the amount.

Answer 5

No, you don't declare money that is given to you as a gift as long as it is under $12,000.00. The person that gave it to you has to declare it, but you can receive that amount every year and not declare it.

Answer 6

No, if it was a gift to you, you don't report it, and don't pay taxes on it.

Answer 7

No, a bona fide gift that you receive is NOT taxable to you at all.