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Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: Tax
Satisfied Customers: 17208
Experience:  10 years experience
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I received $13,000 from my two aunts ($26,000) and $26,000

Customer Question

I received $13,000 from my two aunts ($26,000) and $26,000 from my parents as gifts in 2010 for investment purposes. Do I have to declare the total $52,000 as income on my return and do my aunts and parents need to declare anything on their return
Submitted: 5 years ago.
Category: Tax
Expert:  Wallstreet Esq. replied 5 years ago.

Wallstreet Esq. :

Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarification.

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Expert:  Wallstreet Esq. replied 5 years ago.

Since the amounts given to you are at the annual exclusion limit they do not have to declare the gist as part of a tax return.

 

If they made a taxable gift, they must file Form 709: U.S. Gift (and Generation-Skipping Transfer) Tax Return, which is due April 15 of the following year. Even if they do not owe a gift tax because they have not reached the $1 million limit, they are still required to file this form if they made a gift that exceeds the $13,000 annual gift tax exclusion level. The IRS needs to keep a running tab of their lifetime exemption.

Expert:  Wallstreet Esq. replied 5 years ago.

Since the amounts given to you are at the annual exclusion limit they do not have to declare the gist as part of a tax return.

 

If they made a taxable gift, they must file Form 709: U.S. Gift (and Generation-Skipping Transfer) Tax Return, which is due April 15 of the following year. Even if they do not owe a gift tax because they have not reached the $1 million limit, they are still required to file this form if they made a gift that exceeds the $13,000 annual gift tax exclusion level. The IRS needs to keep a running tab of their lifetime exemption.