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Steve -- a.k.a. Oreport
Steve -- a.k.a. Oreport, Internet Information Researcher
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Do we have to pay taxes on donation we recieved.

Resolved Question:

Do we have to pay taxes on donation we recieved if the proceed were later given as a gift?

In Jan 04 my wife's father suffered a heart attack. His five kids (My wife is second of five) set up a bank account the their names (the five kids) to accept donations for the medical bills of their father. They rased about $7,000.
This money was gifted to the father to help pay medical bills.

Now I'm fairly sure from reading FORM 709, the father does not have to pay taxes, but what about the five kids? Do they have to report this as taxable income?

?Optional Information: tucson, ArizonaAlready Tried: IRS 709
Submitted: 8 years ago.
Category: Tax
Expert:  Steve -- a.k.a. Oreport replied 8 years ago.
With regard to the monetary donations received by your wife and her siblings under The United States Tax Code these monies are considered gifts' -- and, are not treated as taxable
income with respect to any of the recipients -- your wife and her siblings, or their father.




With respect to your wife and her siblings giving money to their father --

The United States Tax Code allows each individual to give $11,000 per year -- per
person, to as many people as they wish -- without having to either pay a gift
tax -- or file a report oneon the gifts given.



What is more,
each person also has a $1 million lifetime gift
exclusion -- over and above the $11,000 annual per-recipient
exclusion. Gift amounts in excess of the $11,000
annual per-recipient
exclusion -- but under the $ 1 million
$1 million lifetime gift
exclusion must be reported -- but are not taxed.




You will find more information contained in IRS Publication 950.



Let me know if you need more input. If not, thanks for the
opportunity to assist you... Please honor my efforts by pushing the
green 'Accept' button (located within this post -- above-right).
Adding a bonus -- should you wish to do so -- would be warmly welcomed.



Good Luck!



Steve












Steve -- a.k.a. Oreport, Internet Information Researcher
Category: Tax
Satisfied Customers: 1079
Experience: Links to relevant I.R.S. materials provided with each US Federal Tax answer 1,000 Site-wide Accepts.
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Steve -- a.k.a. Oreport
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