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Lev
Lev, Tax Advisor
Category: Tax
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Experience:  Taxes, Immigration, Labor Relations
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if i get a gift of 10 million dollars from my father ...

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if i get a gift of 10 million dollars from my father how much of this money will the feds take for taxes and the state of california
Gifts are not taxable income to the person who gets them. The person making the gift will need to file a Gift Tax return because of the amount of the gift. You'll not even need to show that as income on your personal return for Federal or CA purposes.
Customer: replied 10 years ago.
Reply to Wayne Brasch's Post: the gifter wants me to pay any tax the comes with the gift and is it true 46% in taxes

Yes - this is true. You may see in IRS publication 950 - http://www.irs.gov/pub/irs-pdf/p950.pdf that the lifetime exclusion from the gift tax is $1,000,000. Any amount above will be taxed with some exceptions to this rule.

  • Gifts that are not more than the annual exclusion for the calendar year ($12000 for 2006),
  • Tuition or medical expenses you pay directly to a medical or educational institution for someone,
  • Gifts to your spouse,
  • Gifts to a political organization for its use, and
  • Gifts to charities.

You may use this gift tax calculator to estimate your taxes - http://www.accountantsworld.com/taxcalc.aspx?Calc=GiftTaxCalc&page=taxation

California Generation-Skipping tax will be extra - http://www.sco.ca.gov/col/taxinfo/estate/lawreg/lawreg.pdf

Customer: replied 10 years ago.
Reply to Lev's Post: how do i use the gift tax calculator what are the dedutions you gave me a chart but did not explain it

Deduction is first $12,000 per year

If you put $10,000,000 gift amount your tentative gift tax will be $4,380,880.

If the gift tax were never paid before Unified Credit will be put automaticaly as $780,800, and final tax due will be $3,600,080.

The gift tax return to be filled is IRS form 709 - http://www.irs.gov/pub/irs-pdf/f709.pdf

Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28084
Experience: Taxes, Immigration, Labor Relations
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