I have several questions that I'm hoping you can help me with. During the past several years, I received income from various sources, most of which came from my parents in form of help, gifts or loans. According to my previous CPA, gifts, help from family and family loans are not considered taxable income
. However, after conducting some research during the past several months, I read various articles and each article states something different. I am currently at loss as to whether my CPA's advice was correct or not. Below is what I received, please let me know if I am liable:
Gifts from parents exceeding the annual limit (I don't believe my parents paid taxes
on the amount exceeding the limit. Does that make me liable, or is it still their liability?
Help: I faced some personal issues and my father helped me in the form of gifts (not to be repaid). Meaning, I fell into financial trouble and my parents gave me money to get by.
Wedding: Present in the form of money for my wife and I on our wedding from family.
Personal loans from parents that are to be repaid whenever I am able to do so. No specific time or amount. No written agreement. Only verbal agreement.
Now, according to my previous CPA, I am not liable for any of the above. He said gifts are not taxable unless they exceed the limit and even if they do, the tax falls on my parents and not myself. However, when I asked my parents, they seemed clueless about this law
He also said "help" that is not repayable from parents is also considered a gift and not taxable. And finally, he said loans are not taxable. Please advise.