Hi. I have a question regarding gift tax
. I am starting a business and my parents are considering a request to help me begin with a $50k cash gift. We live in California
I have researched the gift tax laws
and this is what I have learned. It appears that as of January 1, 2013 parents may give a cash gift of $28,000 without paying any gift tax. That's $14,000 for each parent. But I also read that any amount exceeding the $28,000 annual gift tax limit can also absolve the givers of paying taxes
on their gift if the givers (my parents in this case) apply the balance to their LIFETIME UNIFIED CREDIT
which appears to be up to $5 million.
Therefore, looking at a $50,000 (early inheritance
) cash gift, $28,000 cash would be exempt
from the gift tax and $22,000 would be applied to their $5 million unified credit.
I have 2 questions:
1) Is the above information correct?
2) What tax liabilities
do I face, as the RECIPIENT of a $50,000 gift from a relative?