Say I have, hypothetically, 20 relatives, and they all wanted to give me $12,000 in the same year. I know they would not be taxed on their end because of the yearly gift limit their allowed to give. But would I be taxed on my end, seeing as how I'd suddenly be $240,000 richer?
Wouldn't the government consider that income, and then want a chunk of it?
thanks for any insight you can offer.
2007-08-12 23:02:50 · 7 answers · asked by jimbob 2 in Business & Finance ➔ Taxes ➔ United States
No, gifts to you are not taxable. You could receive a gift of $12,000 from every person on earth and it would not be taxable to you. And even if they all gave you more than $12,000 it still wouldn't be taxable to you, they just would have to fill out a gift tax return. Gifts to the receiver are never taxable to the receiver. Period.
2007-08-13 00:02:54 · answer #1 · answered by Anonymous · 3⤊ 0⤋
No limit - each of those 20 generous relatives could give you $12,000 without any tax implications for anyone.
No, gifts are NOT considered as income to the recipient, so you wouldn't have any tax on them in any case.
2007-08-13 03:20:17 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
PepsiLime, Boston and Judy ... gave you clear and accurate information.
Gift tax rules are relatively simple. Don't overthink the issue. The tax is on the giver when it exceeds the limit. It is never on the receiver.
The only income tax you would owe would be on the earnings AFTER the gift was given to you.
2007-08-13 04:28:25 · answer #3 · answered by CPA/PFS 2 · 0⤊ 0⤋
There's no limit on gifts received. They are never taxed to the recipient.
2007-08-13 00:15:10 · answer #4 · answered by Bostonian In MO 7 · 0⤊ 0⤋
once you supply your mom $13,000, the remainder $87,000 might bypass in the direction of your lifetime exclusion. you supplies you away hundreds of thousands of greenbacks beforehand paying present tax under contemporary regulation. you in basic terms ought to document a latest tax return. That $87,000 might merely decrease the quantity which you supplies you tax unfastened over the $13,000 exclusion at yet yet lower back.
2016-12-30 11:27:33 · answer #5 · answered by ? 3 · 0⤊ 0⤋
Unlimited.
2007-08-13 03:50:05 · answer #6 · answered by acmeraven 7 · 0⤊ 0⤋
hmm better off ringing your tax office and find out dont need to tell them who you are and they will give you the best response!!!
2007-08-12 23:12:02 · answer #7 · answered by dappa d 2 · 0⤊ 4⤋