Tax?

[missed mallards]

If you are Gifted money do you have to claim it in on your income tax?

[sunnylab]

i wouldn't

[Locked Up]

Yes, Yes, Yes!!!!!! The only ones that can get a tax break on gifting is the giftee. If you have it in cash in a little box under you bed or gun safe then I wouldn't. But if the giftee claims they gave it to you for a tax break then the FEDS raise a eye.

[duck_nutt]

i thought there was a 'one time gift allotment' you could receive from a parent of family member...but can't remember the amount..seems lke under 10k....


ya know, i just might be making this up.....mind is the first thing to go

[regishay]

no you can recieve up to 10k a year as a gift, its the other that is a one time deal, but its 50k or more i believe.

[Tgrindlay]

Anything over 12k reduces the estate tax exemption. Of course if they gave your wife 12k that would be free too.

Gifts are not taxable on your tax return.

Tgrindlay CPA

[Du_timberone]

The gift exclusion is $10k per giftee. For example: you mom and dad could give you $10k each for a total of $20k in a taxable year and they would note it on their return as a reduction in taxable income; you would show it as non-taxable income on the appropriate tax form (unsure on the number). However, I am sure of the exclusion as noted above.

[dukluk]

Anything over 12k reduces the estate tax exemption. Of course if they gave your wife 12k that would be free too.

Gifts are not taxable on your tax return.

Tgrindlay CPA

THIS MAN KNOWS HIS STUFF, AND SPEAKS THE TRUTH!!!

[flyntwt]

i was gonna put in my two cents. but the cpa is right... its 12k/24k for a couple in a single year.


flyntwt --Reg. Financial Planner

[MemphisStockBroker]

Basically no, unless it is over the allotted amount, which changes with inflation.

This year, the limit is $12,000 per person.

There are techniques to pass down more, one being to accelerate the unified credit....

It falls under the Unified Gift and Estate Tax laws...

[MemphisStockBroker]

... and they would note it on their return as a reduction in taxable income ...

Not true. It does not lower the grantor's income, and it is not noted on their income tax return.

You can not pass pre-tax income to another tax payer (called tax shifting), and lower your taxable income. ( if you are gifting cash )

[MemphisStockBroker]

i thought there was a 'one time gift allotment' you could receive from a parent of family member...but can't remember the amount..

The $12,000 gift amount is an annual amount. Can be done ever year, to any number of people the grantor chooses.

The "one time" gift is called the Unified Credit, usually taken at a death, and is equal to $2,000,000 of assets this year.

[MemphisStockBroker]

Anything over 12k reduces the estate tax exemption. ..

Tgrindlay CPA

Not necessarily true. You can chose to accelerate the unified credit on excess gifts, or you can pay the gift tax associated with it. There are situations where it makes sense to pay the tax now, and not accelerate the credit.

[mudsucker]

Anything over 12k reduces the estate tax exemption. Of course if they gave your wife 12k that would be free too.

Gifts are not taxable on your tax return.

Tgrindlay CPA

THIS MAN KNOWS HIS STUFF, AND SPEAKS THE TRUTH!!!

BUT! Is he an internet scouter? Has been a member from Indiana since '05 and that was his 10th. post! Maybe we can have a CPA/tax forum and he will post more!