How much are you taxed on when you recieve money gifts (5 to 6 figures)? Is there a $ limit you can recieve as a gift?
2007-09-13 03:23:53 · 3 answers · asked by questionable 1 in Business & Finance ➔ Taxes ➔ United States
What if the gift giver is from oversea's..is it up to his own tax laws? Is there any other specifications when recieiving money gifts from another country?
2007-09-13 03:37:50 · update #1
Gifts of money are never taxable to the person who receives them, no matter if it's 1 penny to all the money in the world. There is a form to fill out though for gifts received from a foreign person. I've attached the form & instructions (Form 3520) for you.
If the giver if a US citizen they can give $12,000 per year per person as a gift without any tax consequences. Above that amount they have to file a gift tax return, but have a $1,000,000 lifetime exclusion they can draw against for the excess.
2007-09-13 04:03:27 · answer #1 · answered by Anonymous · 0⤊ 0⤋
You pay no tax on bona-fide gifts you receive. The donor of the gift is responsible for paying any tax.
If the donor is a foreign person or entity you may have to file a report (Form 3520) on the amount of the gift. If it is determined that it was not actually a gift but some other sort of income there may be taxes due.
The foreign donor is technically liable for the US gift tax but cannot be compelled to file a US Gift Tax return. There may be a tax treaty between the US and the donor's country that affects their tax liability at home but won't affect YOUR tax liability as the recipient of the gift.
2007-09-13 04:25:03 · answer #2 · answered by Bostonian In MO 7 · 1⤊ 0⤋
Gifts are not taxable to the receiver of the gift.
Gifts may or may not be taxable to the giver. If the giver givers more than $12000 to any one person, a gift tax return needs to be filed. Gift tax may or may not be due.
2007-09-13 03:29:15 · answer #3 · answered by Wayne Z 7 · 0⤊ 0⤋