I am purchasing a home and have recieved a large $ gift for my down payment. Does anyone know how this will effect my taxes this year? I have a gift receipt. Does the donor pay the taxes or do I? If I pay them, how do they factor that into my taxes?
2007-12-12 02:42:40 · 5 answers · asked by Pet Owner 2 in Business & Finance ➔ Taxes ➔ United States
So i have no further obligations, is that corect? Do I need to inform the person that is doing my taxes that I have received a cash gift?
2007-12-12 03:14:49 · update #1
Previous answers are correct. The below link is from the IRS web site as a tax tip.
There is an exception if the gift was given from a foreign citizen.
Additional Detail Response - No you don't have any further obligation. The principle is that the IRS wants their money. Assuming that the person who gave you the money pays taxes, the IRS already got their money. They aren't going to try to get it (taxes) from you too.
Incidentally, I put those links on these responses so you can read it directly from the IRS. It nice to trust people, but it is better to be certain for yourself.
2007-12-12 02:54:09 · answer #1 · answered by Griffin 4 · 0⤊ 0⤋
Receiving a gift has no effect on your taxes. If the gift is over $12,000, the donor will have to file a gift tax return, although unless they've used up their $1 million lifetime exemption, they won't have to pay a gift tax.
2007-12-12 03:04:34 · answer #2 · answered by Judy 7 · 1⤊ 0⤋
The recipient of a gift does not pay taxes. It has no effect on you. The giver of the gift may owe taxes depending on the amount
2007-12-12 02:52:17 · answer #3 · answered by just_the_facts_ma'am 6 · 0⤊ 0⤋
Gifts are not taxable to the receiver.
The giver must file a Gift Tax return if the gift is over $12000 but gift tax may or may not be owed.
2007-12-12 02:52:11 · answer #4 · answered by Wayne Z 7 · 1⤊ 0⤋
No obligations, and don't inform your preparer.
2007-12-12 03:45:09 · answer #5 · answered by r_kav 4 · 0⤊ 0⤋