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ShawnA
ShawnA, CPA, Professor, CFP. CGMA, Business Consultant, Professor, PFS I have decades of experience answering these questions.
Category: Tax
Satisfied Customers: 2884
Experience:  CPA, Professor, CFP. CGMA, Business Consultant, Professor, PFS I have decades of experience answering these questions.
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If i give someone 100000 as a gift do i need to report it to

Customer Question

if i give someone 100000 as a gift do i need to report it to the irs and owe tax?
Submitted: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year ago.
Hi and welcome to our site!In the US - a gift - is not taxable income for the recipient and the donee does not need to report it to the IRS.There is no any amount limit.Please see IRS publication 525 - page 31 -http://www.irs.gov/pub/irs-pdf/p525.pdfGifts 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.You - the donor is subject of US gift tax regulations.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 2015) per person per year.There will not be any gift taxes unless the lifetime limit of $5,430,000 (adjusted every year for inflation) is reached.So far - neither will have tax liability.But because the gift is above $14,000 - you will need to file the gift tax return - but most likely - will NOT owe any gift tax.
Expert:  Lev replied 1 year ago.
Hi and welcome to our site!
In the US - a gift - is not taxable income for the recipient and the donee does not need to report it to the IRS.
There is no any amount limit.
Please see IRS publication 525 - page 31 -
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.
You - the donor is subject of US gift tax regulations.
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 2015) per person per year.
There will not be any gift taxes unless the lifetime limit of $5,430,000 (adjusted every year for inflation) is reached.
So far - neither will have tax liability.
But because the gift is above $14,000 - you will need to file the gift tax return - but most likely - will NOT owe any gift tax.
Please see
Gift tax return
http://www.irs.gov/pub/irs-pdf/f709.pdf
instructions
http://www.irs.gov/pub/irs-pdf/i709.pdf
If you still have any doubts, need clarification - please be sure to ask.
I am here to help you will all tax related issues.
Expert:  Lane replied 1 year ago.
Hi,
NO.
Not unless you have already given away over $5,430,000 during your life.
(That's he lifetime exemption on gifts in 2015)
This also goes up each year ... It's up $90,000 from last years $5,340,000.
You WILL need to file a form 709 in any any year that you give over $14,000 to any one person - The Annual amount that's COMPLETELY excluded from gift tax - to track against the lifetime exclusion.
Let me know if you have questions ...
lane
Expert:  Lane replied 1 year ago.
..
Expert:  ShawnA replied 1 year ago.
Hello. My specialty is focusing on YOUR Financial needs. Financial Planner/Business Owner for 20 years. Retired CPA
Do you still have questions? Would you like a telephone call?