2007-11-07 05:45:32 · 4 answers · asked by Drifter 2 in Business & Finance ➔ Taxes ➔ United States
Yes That amout is tax deductible there is a gift tax to the person who is giving the gift but it is small amount... You are allowed by tax law to give this amount but it must be declared by you the sender and the person who receives this gift. It goes on a special tax form just for this purpose of reporting this gift. Make sure this is done so you can get the credit on your tax form.
2007-11-07 05:55:24 · answer #1 · answered by elmopoof 1 · 0⤊ 5⤋
Not unless you give it to a 501(c)3 charity. If you give it to a person, it is NOT deductible - elmopoof is WRONG. You can give a gift under $12,000 without filing a gift tax return for the gift or paying a gift tax on it, but it's not deductible from your income tax.
2007-11-07 06:11:12 · answer #2 · answered by Judy 7 · 4⤊ 0⤋
A gift of over $12,000 to a non-charity is TAXABLE! That means not only is the gift not deductible, it's taxable! You can give $12,000 per person per year tax free. Any amount above that you, the giver, must file a gift tax form and pay tax.
2007-11-07 13:27:23 · answer #3 · answered by Gene 2 · 0⤊ 1⤋
"Gifts" to individuals are in no way tax deductible.
"Gifts" to qualified charities are tax deductible up to 50% of you income.
2007-11-07 06:09:19 · answer #4 · answered by Wayne Z 7 · 0⤊ 0⤋