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My parents wrote me a check for $10,000 from their business account as a gift. I'm not an employee of their business but my wife is self employed and does some work for their business and receives a 1099 each year. We file a joint tax return. Will this "gift" have tax implications for us?
Hello jim, If and when gift tax is ever due, it is paid by the donor of the gift and not the recipient. Under current law, each individual is allowed to give annual gifts of up to $13,000 to another individual without any reporting requirements. So your parents do not have to report the gift, and you will not claim this as taxable income on your own return. However, your parents should be aware of the fact that they are not allowed to claim this as a tax deduction, regardless of whether or not they gave you this gift from their personal account or their business account. Gifts to anyone other than a qualified charitable organization are not deductible by the donor as an expense. But no taxes will be due on the gift that you received. If this was helpful please press the Accept button. Positive feedback is also appreciated. Thank you jim.
Accountant
25+ years tax consulting. Specializing in returns for US citizens living abroad