2007-10-27 16:15:02 · 6 answers · asked by kwhotrods 6 in Business & Finance ➔ Taxes ➔ United States
1. A person can give any number of gifts of less than $12,000 to any number of persons. No tax is payable on these gifts.
2. The person who receives a gift of any amount does not pay. Only donor may have to pay the tax.
3. Some States do collect tax on gifts from the person who received the gift. So check at your state web site.
4. All gifts of more than annual exclusion amount ($12000 for 2006) must be reported by the donor. There is a lifetime exclusion of $1 million.
5. 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 2006 without making a taxable gift.
So if your dad gives you $50k, enjoy the money. Only your dad needs to take care of filing gift tax return. Else, your dad and his spouse can give you $24,000 in 2007 and $24,000 in January 2008 without filing.
2007-10-27 16:52:42 · answer #1 · answered by MukatA 6 · 3⤊ 0⤋
Have your Dad pay you $12,000 now. Then another $12,000 in January 2008. The limit of giving money as a gift is $12,000 per year.
2007-10-28 03:36:58 · answer #2 · answered by Gary 5 · 0⤊ 0⤋
Assuming that is a accual gift, NO, you will not have to pay taxes on it. However, your dad will have to file a Gift Tax return...though no Gift Tax may be due.
2007-10-27 16:23:47 · answer #3 · answered by Wayne Z 7 · 1⤊ 0⤋
what if my dad dies before he files a tax return
2016-10-14 13:26:10 · answer #4 · answered by Holly 1 · 0⤊ 0⤋
There is a law that does not allow your dad to give you more than a $10, 000 gift. So be sure to look into that.
2007-10-27 16:19:21 · answer #5 · answered by Secret 2 · 0⤊ 6⤋
I'm not sure of that right now.
2007-10-29 06:48:11 · answer #6 · answered by Bondgirl 3 · 0⤊ 1⤋