QUESTION
How does a person who receives a large gift over $100 have to account and pay tax and what if they don't report it?
Asked on Apr 03rd, 2013 on Taxation - Washington
6 ANSWERS
Taxation Law Attorney serving Glendale, CA
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Irsfeld, Irsfeld & Younger LLP
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Gifts generally are not taxable income.
Answered on Apr 04th, 2013 at 10:37 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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The person who receives the gift generally does not have to report it or pay taxes on it unless there is something else going on, like a personal bankruptcy. Large gifts must be reported by the person who makes the gift, not the recipient.
Answered on Apr 04th, 2013 at 8:25 PM
Generally, gifts are not re-portable, especially in the amount that you mention. However, this is true only if it is an actual gift and not a distribution of income.
Answered on Apr 04th, 2013 at 8:25 PM
Gifts are generally not taxable and not included in income. The donor has to report gifts of over 14000.00 to the Irs on a gift tax return. Everyone has currently a $5000000 lifetime gifting exemption. So even gifts over 14000.00 only go to reduce the lifetime exemption and result in no taxes owed.
Answered on Apr 04th, 2013 at 8:21 PM
Gifts are not considered taxable income to the person who received the gift. No tax is due and it does not have to be reported to the IRS.
Answered on Apr 04th, 2013 at 8:17 PM
Estate Planning Attorney serving Wilmington, DE
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Reger Rizzo & Darnall, LLP
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No tax to donee on any gift, donor pays tax. Unless gifts total more than $14,000 to one person in one year, no tax or reporting.
Answered on Apr 04th, 2013 at 8:17 PM