How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Chad Oberg Your Own Question

Chad Oberg
Chad Oberg, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 174
Experience:  10 + years of accounting and tax experience, financial statements and business planning
Type Your Tax Question Here...
Chad Oberg is online now
A new question is answered every 9 seconds

Hi there, I wonder if you could help me. My wonderful mom is

Resolved Question:

Hi there, I wonder if you could help me. My wonderful mom is giving me 40k to help me get out of some insane high interest credit card debt. My question is what is the best way, tax wise, to go about handling this transaction. I will be paying off the cards immediately with this money. Would i be taxed on this money if she deposits it into my account? She lives in South Carolina and I live in GA. Or would the credit card companies let her make the payments? i would rather not hassle her with that if I don't have to. thanks!
Submitted: 3 years ago.
Category: Tax
Expert:  Chad Oberg replied 3 years ago.
Chat Conversation Ended

If you are still working with your Expert on this question, you can post additional replies and receive additional information on this page.  If you received a satisfactory answer in Chat, you can accept the chat conversation above.
Expert:  Chad Oberg replied 3 years ago.
Chat Conversation Started
Expert:  Chad Oberg replied 3 years ago.

An individual can gift up to $13,000 per recipient for 2010 and not subject to the tax. In a marriage, a couple can pool their individual gift exemptions to make gifts worth up to $26,000 recipient. So, if your parents are married, they could gift you $26,000 without any tax consequence. What you may consider is having them gift $26,000 now and $14,000 during 2011, if they are married or $13,000 now and $13,000 during 2011, if you mom is single. Please see the attached publications and documents from the IRS:

 

http://www.irs.gov/businesses/small/article/0,,id=224515,00.html

 

http://www.irs.gov/pub/irs-pdf/p950.pdf

 

If you have any questions, please do not hesitate to contact me. If you do not have any questions, please accept my answer and thank you for using Justanswer.com.

 

Regards,

 

CEO, CPA

Customer: replied 3 years ago.
Ok. so my understanding is she can give me 13,000 (she's single) this year and 13,000 next year without my paying taxes. But if she gave me 13,000 this year, then the rest next year (27,000) I would be taxed on 14,000, is this correct? How much would I be taxed on that amount? thanks!
Expert:  Chad Oberg replied 3 years ago.

No, you would never pay taxes on these gifts. Your mom is responsible for paying the gift tax and filing a gift tax return if amounts to any one individual go over the $13,000. If the amount is $13,000 or under each year, there is no filing requirement and you and your mom pay no tax. The only requirement is that you mom keep track of all the gifting throughout her life because this amount will reduce her lifetime exclusion.

Chad Oberg, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 174
Experience: 10 + years of accounting and tax experience, financial statements and business planning
Chad Oberg and other Tax Specialists are ready to help you
Customer: replied 3 years ago.
Ok. I understand. That's great news! Thank you!
Customer: replied 3 years ago.
Ok. I understand. That's great news! Thank you!

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
< Last | Next >
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
  • I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight. Bonnie Chesnee, SC
  • Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation. John Minneapolis, MN
  • Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with. Orville Hesperia, California
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
 
 
 

Meet The Experts:

 
 
 
  • Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
< Last | Next >
  • http://ww2.justanswer.com/uploads/KU/KUMI95/2013-9-30_195031_kumar.64x64.jpg Wallstreet Esq.'s Avatar

    Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
  • http://ww2.justanswer.com/uploads/CU/Cuttinggirl/2011-10-29_03719_wcrop2.64x64.jpg Wendy Reed's Avatar

    Wendy Reed

    Enrolled Agent

    Satisfied Customers:

    3052
    15+ years tax preparation and tax advice.
  • http://ww2.justanswer.com/uploads/CATax/2009-08-04_204548_Mark.jpg Mark D's Avatar

    Mark D

    Enrolled Agent

    Satisfied Customers:

    985
    MBA, EA, Specializing in Business and Individual Tax Returns and Issues
  • http://ww2.justanswer.com/uploads/IN/insearchoftheanswer/2013-8-16_0233_attorney.64x64.jpg Richard's Avatar

    Richard

    Tax Attorney

    Satisfied Customers:

    3229
    29 years of experience as a tax, real estate, and business attorney.
  • http://ww2.justanswer.com/uploads/MY/MyVirtualCPA/2012-7-5_44024_cookmegan1.64x64.jpg Megan C's Avatar

    Megan C

    Certified Public Accountant (CPA)

    Satisfied Customers:

    6121
    Licensed CPA, CFE, CMA who teaches accounting courses at Master's Level
  • http://ww2.justanswer.com/uploads/JG/jgordosea/2012-6-7_43138_GordosVeritas.64x64.jpg jgordosea's Avatar

    jgordosea

    Enrolled Agent

    Satisfied Customers:

    2783
    I've prepared all types of taxes since 1987.
  • http://ww2.justanswer.com/uploads/OZ/ozaukeecpa/2012-6-7_193219_Picture1croppedandshrunk.64x64.jpg MequonCPA's Avatar

    MequonCPA

    Certified Public Accountant (CPA)

    Satisfied Customers:

    2231
    CPA, Over 30 yrs experience w/individuals and small businesses. Masters in Tax.