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PDtax, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 4034
Experience:  35 years tax experience, including four years at a Big 4 firm.
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My husband died and left me his IRA I had the financial

Customer Question

My husband died and left me his IRA I had the financial Place sell some stocks so I can get $40,000 I gave my daughter a 33 thousand dollar cashier check to buy a new car because I cannot drive and she had to quit her job to take care of me to drive me back and forth to my cancer treatments the money has been taxed through the IRA but after she paid for the car ,The auto dealership sent her an IRS notice saying that they had to report spending anything over 10,000 dollars I thought since that Financial place already taxed the money.I gogure everything would be fine is there anything else that I need to know I should do.. I live in Chicago Illinois
Submitted: 2 months ago.
Category: Tax
Expert:  PDtax replied 2 months ago.

Hi from just answer. I'mCustomer I'll assist.

There should be no tax to pay by your daughter. Treat the car check as a gift, and she should be fine.

The dealership has to report cash transactions of $10,000 or more to IRS, but that won't mean she has to pay tax. Gifts are tax free unless you have many millions of dollars she might inherit.

You could do nothing, and be fine, but the best thing to do is file a gift tax return, form 709. It just tells IRS that you choose not to pay tax on the gift. Whoever prepared your tax return, or hers, can complete the form for you. It's easy.

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