2007-10-14 14:10:20 · 9 answers · asked by magnanimous 1 in Business & Finance ➔ Taxes ➔ United States
Cannot believe how much the idea of 'gift tax' is misinterpreted. The tax is on the giver, not the person who receices the gift. There are a couple on here who have it right. You can give up to $1,000,000 in your lifetime before gifts become taxable. It can affect other things, like the estate tax, so if there is some chance that the person who gave you the money is giving away a lot of money to a lot of people, the he or she should get the advice of a professional.
If you were given the gift not by a person, but by an entity, like a church or charity, it is still not taxable to you.
If you won this money in a lottery, raffle, bngo game, etc, then it is fully taxable to you. You can also take all of your losses (up to the $10,000 that you won) on the Schedule A if you itemize deductions. If it is taxable, then you would need to file a 1040X - Amended tax return, in order to make things right with the IRS.
But if, as you say, it is truly a gift, then you don't have to worry about the tax at all.
2007-10-21 16:21:44 · answer #1 · answered by Katie Short, Atheati Princess 6 · 0⤊ 0⤋
No tax is payable on the gift. The person who receives a gift of any amount does not pay. Only donor may have to pay the tax.
Any a person can give any number of gifts of less than $12,000 to any number of persons without any gift tax liability. Only the gifts of more than annual exclusion amount must be reported. There is a lifetime exclusion of $1 million.
A person making a gift in excess of $12K must include the gift in the lifetime exclusion and file Form 706 to document the gift. If you are married, both you and your spouse can separately give up to $12,000 to the same person in 2007 without making a taxable gift.
2007-10-14 14:47:17 · answer #2 · answered by MukatA 6 · 2⤊ 0⤋
Geez, what a bunch of mostly wrong answers.
The recipient of a gift doesn't pay any tax on it, or report it, no matter how much it is.
The GIVER has to file a gift tax return if they give any one person over $12,000 in a year. They might or might not have to pay any tax though - they have a $1 million lifetime exemption where they don't have to pay a gift tax, although that could affect how much of their estate is subject to estate tax.
2007-10-14 17:02:45 · answer #3 · answered by Judy 7 · 1⤊ 0⤋
present taxes are paid by employing the donor interior the U. S., in no way by employing the recipient. you ought to acquire billions in presents and does no longer owe a dime in taxes. the article is erroneous while it states that the recipient will pay taxes at present. have faith the IRS web page over some weblog!
2016-10-22 10:46:24 · answer #4 · answered by dyett 4 · 0⤊ 0⤋
You can receive 11,000 if the person giving a gift is single, or 22,000 if the person giving a gift is married, without paying any taxes on it. That was for 2007, 2008 could be different.
2007-10-14 14:19:49 · answer #5 · answered by sintosol2 2 · 0⤊ 4⤋
My question is who is giving gifts and where do I sign up?
2015-10-13 12:21:33 · answer #6 · answered by Kevin 1 · 0⤊ 0⤋
You don't have to pay taxes on the first ten thousand.
2007-10-14 14:15:11 · answer #7 · answered by Anonymous · 1⤊ 2⤋
You don't have any worries.IT WAS A GIFT.
but if you try to report it,I'm sure the IRS would find
some way of getting it.
2007-10-14 14:28:56 · answer #8 · answered by Anonymous · 0⤊ 1⤋
you are allowed to have a ONE TIME gift in your lifetime that you do not need to pay taxes on. Unless the IRS contacted you, than dont worry about it at all.Its not considered an income
2007-10-14 14:18:03 · answer #9 · answered by Anonymous · 0⤊ 5⤋