I know you can give someone up to $10,000 a year as a gift. But how much if you gave $150,000? Would it be considered income an the standard income taxes apply, or are the taxes different on large cash gifts?
2007-08-29 07:10:11 · 9 answers · asked by chef4133 2 in Business & Finance ➔ Taxes ➔ United States
Consult a tax professional on this one, it isn't income, and it may not be taxable for either party. There are special tax rules for gifts as indicated in Publication 950.
This is what the IRS says:
IRS Tax Tip 2007-39
If you gave any one person gifts in 2006 that valued at more than $12,000, you must report the total gifts to the Internal Revenue Service and may have to pay tax on the gifts.
The person who receives your gift does not have to report the gift to the IRS or pay gift or income tax on its value.
2007-08-29 07:28:36 · answer #1 · answered by Anonymous · 0⤊ 1⤋
The person receiving the gift does not owe any tax on the gift.
The person giving the gist needs to file a IRS form 709 (Gift Tax Return) reporting the gift. The giver can give $12,000 a year to any number of individuals without having to file a report. The amount given to a single individual in excess of $12,000 per year is report and counts against the $100,000 lifetime exclusion.
2007-08-29 08:45:06 · answer #2 · answered by skipper 7 · 1⤊ 0⤋
Person that receives a gift never has to pay taxes on the gift, no matter if it's 1 cent or 1 Trillion dollars. Person giving the gift can give up to $12,000 per year without triggering a gift tax return, but even if the person exceeds the $12,000 limit they would have to file a gift tax return, but have a $1,000,000 lifetime exclusion to draw against.
2007-08-29 07:55:23 · answer #3 · answered by Anonymous · 2⤊ 0⤋
Receivers of gifts do not pay tax on the gift.
The Giver of a gift over $12000 must file a Gift Tax Return and may or may not have to pay gift taxes depending on how much they have already given away.
2007-08-29 07:20:30 · answer #4 · answered by Wayne Z 7 · 1⤊ 2⤋
You don't pay anything on a gift you receive. If one person gives you ove $12K in a calendar year, THEY would have to file a gift tax return, and if any tax is due, they would be the one to pay it.
2007-08-29 08:03:07 · answer #5 · answered by Judy 7 · 1⤊ 1⤋
I am not sure about US but in Canada you do not have to pay taxes on a gift or lottery winnings for 1 year. After that the taxes you pay would be the same as the tax bracket you would be in for making that sum of money in one year. So can be as high as 50%. May be different in the US. Also I believe amounts under $25000 are not subject to taxes. Best thing to do is if you get a large sum of money is to invest it as they cannot tax investments until youi cash them out.
2007-08-29 07:16:36 · answer #6 · answered by Anonymous · 0⤊ 4⤋
You pay no tax on gifts that you receive, regardless of the amount.
2007-08-29 07:43:47 · answer #7 · answered by Bostonian In MO 7 · 1⤊ 0⤋
present taxes are paid by way of the donor interior the US, under no circumstances by way of the recipient. you may get carry of billions in presents and does no longer owe a dime in taxes. the object is erroneous while it states that the recipient pays taxes on the present. have confidence the IRS internet site over some blog!
2016-10-09 10:01:44 · answer #8 · answered by ? 4 · 0⤊ 0⤋
Figure 45%. That is, if you declare it.
2007-08-29 07:14:43 · answer #9 · answered by FRANKFUSS 6 · 0⤊ 7⤋