i live in florida if that matters
2007-08-02 08:10:11 · 8 answers · asked by rebelmommy4u2 1 in Business & Finance ➔ Taxes ➔ United States
None, gifts are not taxable to the person who gets the gift. You might have to convince the irs that it was a gift though, and the person who gives you $5,000,000 would have to file a gift tax return, and pay tax.
rdnkchick2003, I'm not wrong. If it's a gift, it's not taxable to the person who receives the gift, but the giver can only give up to $12,000 per person per year. After that amount they would need to file a gift tax return, and have a lifetime exclusion of $1,000,000 to use up. If the $5,000,000 is from an estate, the estate would need to pay any taxes from the estate. If the beneficiary received $5,000,000 it would be tax free to them.
2007-08-02 08:12:54 · answer #1 · answered by Anonymous · 3⤊ 0⤋
PepsiLime is "dead on". The gift or estate taxes are paid by the donor or the estate. You do NOT pay the gift or estate taxes.
But since you didn't specify what type of taxes ... you might owe income taxes IF the donor or decedant didn't. This (Income with Respect of a Decedant or IRD) is a very complicated area of the tax code. To keep it simple, assets such as IRAs or qualified plans or deferred annuities are subject to IRD and you would pay income tax on the proceeds.
2007-08-03 07:11:48 · answer #2 · answered by CPA/PFS 2 · 0⤊ 0⤋
If someone gave it to you as a gift? You wouldn't owe any tax on it, or have to even report it. The donor would have to file a gift tax return though, and pay whatever gift tax was due.
2007-08-02 11:14:05 · answer #3 · answered by Judy 7 · 2⤊ 0⤋
Absolutely nothing...... Gifts are tax free to the recipient. The person or estate giving you the cash however, is liable for a hefty gift tax after the first $600,000 (for one time lifetime).
Enjoy the money.
2007-08-08 03:40:19 · answer #4 · answered by squeezie_1999 7 · 0⤊ 0⤋
We are an accounting firm and suggest you review http://www.irs.gov and look for estate and gift taxes in the search box contained. This will give you what you seek to know.
BC Business Services, Inc.
http://www.bcbsinc.com
2007-08-05 16:38:03 · answer #5 · answered by Info@bcbsinc.com 2 · 0⤊ 0⤋
Even if you had to pay 80%, in taxes, you still wouldn't have to work for the rest of your life, if that matters.
2007-08-02 08:51:02 · answer #6 · answered by Anonymous · 0⤊ 3⤋
I think the friend above, is wrong.
If you have not received the funds but think you might, consider talking to an attorney about setting putting an entity in place to secure estate taxes do not deplete the gift. A knowlegable attorney who does Wills or probate should be able to help you, or your friend who has the $5million.
2007-08-02 08:16:36 · answer #7 · answered by rdnkchic2003 4 · 0⤊ 5⤋
I don't know, but if you get the money can I give you my phone number?....heh heh heh
2007-08-02 08:19:33 · answer #8 · answered by Cheese 4 · 0⤊ 4⤋