Have a Tax Question? Ask a Tax Expert
Hi & thanks for using our service. I'll do my best to give you a complete & accurate answer. Please ask me to clarify anything you don't understand.
It depends upon how much you're talking about?
about 40K from each sister
Well, once you go over $13,000. from each sister, it starts to get complicated.
Each individual has a lifetime gift tax exemption of $1,000,000. in total gifts in excess of the annual exclusion amounts; so there would be no gift or income tax due.
If your sisters are married, they could give you a total of $26,000. (each) a year, by their husbands joining in the gift; that requires a gift tax return to be filed but no gift tax is payable.
Beyond that, they would have to spread out the transfer between at least 2 tax years to avoid any more involved reporting.
this is getting to complex for me, I think I would like to be face to face with someone. I would be more comfortable.
If you want to get the money all at once, you are probably going to need someone to prepare the gift tax returns; of course, realize that there is no reporting requirement on your part; it is the donor (your sisters) who must each file gift tax returns if they give you more than $13,000. in any one calendar year.
Please remember to "Accept", it is the only way we get credit for our work. Feedback, if you have time, and bonuses, where you think they are warranted, are always most appreciated.
I'll be happy to answer any follow-up questions you may have.