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Stephen G.
Stephen G., Sr Income Tax Expert
Category: Tax
Satisfied Customers: 6172
Experience:  Extensive Experience with Tax, Financial & Estate Issues
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My mom recently sold the house & was planning on giving me

Customer Question

my mom recently sold the house & was planning on giving me $30,000. this money is to be set aside toward funeral costs in case something happens to her. is this taxable? if yes, how much do you estimate the tax to be?
Submitted: 1 year ago.
Category: Tax
Expert:  Stephen G. replied 1 year ago.

No. It is not taxable to you. If it is a gift, she would be required to file a gift tax return at the same time she files her income tax return for the year that she transfers the funds. She would file the return on Form 709, but no tax would be due. As an alternative, she could set up a separate joint savings account or a POD (Paid on Death) account where the balance in account would go directly to you when she died. In that case no gift tax return would be due.

Expert:  Stephen G. replied 1 year ago.

Do you have any further questions or may I further clarify anything for you?