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 Megan C Your Own Question
Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 16547
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
23669918
Type Your Tax Question Here...
Megan C is online now
A new question is answered every 9 seconds

My Father recently passed and my Mother (in Oklahoma) wants

This answer was rated:

My Father recently passed and my Mother (in Oklahoma) wants to give me (in Iowa), a 50k portion of his life ins. for the purchase of my next home. My question is, if I just have her transfer the 50k to my account, will I be taxed heavily on my next tax return, or do i have to report it? How can I not get taxed badly. They all tell me to transfer the money in smaller increments, just hoping for a better simpler answer. I have a house i want to bid on at auction in two weeks and need the money fast.

Megan C :

Thanks for your question, and thanks for using JustAnswer.com

Megan C :

This money is a gift and is NOT taxed

Megan C :

You will not be taxed on this...you don't even put the transfer on your tax return

Megan C :

However, your mother will need to fill out a gift tax return and report the gift, as it is over the annual $14,000 limit. However, she will not have to pay a gift tax unless she has gifted over $5 million during her lifetime

Megan C :

So, it sounds like this will be a totally tax free scenario.

Megan C :

The transfer can happen at any time, so feel free to transfer all the money now.

Megan C :

So, you have good news today - no taxes :-)

Customer:

thank you so much, big relief to me. was scared i would get hit for 10% on my next return

Megan C :

Nope...no hit

Megan C :

:-)

Megan C :

Is there anything else that I can assist you with today?

Megan C :

If there's nothing else I can help you with, please rate my answer as "excellent" so that I may receive credit for assisting you today

Megan C :

I mean, rate me positively using 3-5 stars/smileys located along the bottom of your screen

Megan C and 2 other Tax Specialists are ready to help you

Related Tax Questions