If someone comes into some money and wants to give gifts to each of their 3 children of $10,000, will anyone have to pay tax on these gifts?
Either the giver or then receipients?
2007-07-22 00:38:47 · 3 answers · asked by Craig P 1 in Business & Finance ➔ Taxes ➔ United States
At $10,000 per recipient, no tax will be due and no Gift Tax return is required. The annual exclusion amount is $12,000 per recipient for each donor.
If you exceed $12,000 for any single recipient a Gift Tax return will be required though in most cases no tax will be due due to the unified lifetime credit, currently $1,000,000. That credit WILL reduce the Estate Tax exclusion when the donor passes so there could be Estate Tax consequences for taxpayers who make significant gifts during their lifetimes.
Gifts are never taxable to the recipient so the recipients will never have to pay any tax on the gifts.
2007-07-22 00:45:33 · answer #1 · answered by Bostonian In MO 7 · 2⤊ 0⤋
No. A gift tax would have to be filed on a gift from any one person to any one person greater than $12,000 in a calendar year. For a gift of $10,000, no reporting is necessary, and no tax is due from anyone.
2007-07-22 04:07:51 · answer #2 · answered by Judy 7 · 1⤊ 0⤋
No.
And, if you are married then you wife can give $10,000 too.
2007-07-22 04:51:43 · answer #3 · answered by Russ B 6 · 1⤊ 1⤋