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 Lev Your Own Question
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29495
Experience:  Taxes, Immigration, Labor Relations
870116
Type Your Tax Question Here...
Lev is online now
A new question is answered every 9 seconds

my brother is receiving money from my mothers estate as she

This answer was rated:

my brother is receiving money from my mothers estate as she has passed away. Being the money is coming from an estate and not his own personal funds he wishes to give me half as a gift. From what I read the gift to me would not be subject to a gift tax. The inheritance is about $300.000 and my gift about $150,000. I feel what he gives me only reduces the $5,200,000 he is allowed to receive. Correct?

Lev :

Hi and welcome to our site!
Yes - that is correct.

Lev :

The gift is not taxable for recipients. Please see for reference IRS publication 525 page 31 left column - - http://www.irs.gov/pub/irs-pdf/p525.pdf


Gifts and inheritances. In most cases, property you receive as a gift, bequest, or inheritance is not included in your income. However, if property you receive this way later produces income such as interest, dividends, or rents, that income is taxable to you.


There is no any amount limit. That is for income tax purposes. That would be the donor who files form 709 - gift tax return - not recipients of the gift. The gift tax return is required when the total value of the gift is above $14,000 (for 2013) per person per year.
There will not be any gift taxes unless the lifetime limit of $5,250,000 (adjusted every year for inflation) is reached.

Lev :

So based on your information - your brother may simply gift to you $150k - and there will not be any federal gift tax liability. However - he will be required to file a gift tax return - his taxable gift will be $150k - $14k = $136k - and that amount will go against his lifetime limit - which is $5,250,000 in 2013.

Customer:

can you please send this to my email address provided? thank you

Customer:

can you please send this to my email address

Customer:

can you please send this to my email address and then I will rate service thank you

Lev :

Please be aware - experts do not have access to your personal information - and I personally may not send email to you.
However you may save this information in your local file on your computer.
The address to this page is http://www.justanswer.com/tax/81d0f-brother-receiving-money-mothers-estate.html?src=pql&sso=1
You may come back to this page any time.

Lev :

Refer to Form 709 , 709 Instructions.
Please see IRS publication 950 for reference - http://www.irs.gov/pub/irs-pdf/p950.pdf
That publication covers gift tax responsibility.

Customer:

if married is his lifetime limit $10,500,000 thank you

Customer:

can you please send this to my [email protected]

Lev :

The life limit is per person - not for couple - it is not combined for married persons.
Each spouse has his/her own lifetime limit.
Also gift tax return is for each individual. If each spouse makes a gift - each will separately file his/her own gift tax return and will separately use his/her lifetime limit.

Lev :

Please be aware - experts do not have access to your personal information - and I personally may not send email to you.
You posted your email - but it is automatically blocked - and may not be viewed. I may not see your email - do not post any personal information. Sorry for that.
You will be able to email the answer to yourself after rating.

Lev and 3 other Tax Specialists are ready to help you