Hi and welcome to our site!
If we are discussing a gift - that should be a true gift - not a purchase transaction
and not a loan which is paid back or any other types of transactions.What is considered a gift
? Any transfer to an individual
, either directly or indirectly, where full consideration (measured in money or money's worth) is not received in return
If the transaction is NOT classified as gift - it would be evaluated differently.
In the US - gift - is not taxable income for the recipient and you do not need to be reported to the IRS.
There is no any amount limit. 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.
hat 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.
So - it is likely that the gift tax return will be required to be filed by the donor, but there will not be any gift tax due.
Transactions between spouses - such as buying out ownership interest in the community property - are not taxable transactions. Such transaction is not reported on the tax return of either spouse.
Let me know if you need any clarification this matter.