Ask A Question
Have Tax Questions? Ask a Tax Expert for Answers ASAP
Taxable Gifts Related Questions
Individuals giving or receiving gifts have wondered if the gift should be considered a taxable gift. Uncertainties of what a nontaxable gift is or what the maximum amount of a gift can be before it becomes a taxable gift often lead to questions like the ones answered below.
What are nontaxable gifts?
Generally nontaxable gifts include gifts that do not exceed the annual exclusion amount for the year of $13,000 per recipient. Nontaxable gifts can also include gifts to a political organization for their use, gifts to charities, gifts to a spouse, and tuition or medical expenses that is paid directly to that institution for someone. These gifts given in the fashion mentioned would not be taxable. Read below where Experts have answered many more questions about taxable gifts.
If a parent gives their child $100,000, would the gift be a taxable gift?
Gifts that are received are not counted as taxable income. The recipient would not have to claim any gift amount on their income tax return. It is not looked at as a taxable gift concerning the recipient. Donors of gifts may need to look at the gift as a taxable gift if it is over the $13,000 annual exclusion amount but only if it has exceeded the lifetime exclusion amount of a little over $5 million. The donor would need to file a gift tax return for amounts that would exceed the annual exclusion amount.
Is there a limit to the amount of a gift an individual can receive without the gift becoming a taxable gift?
Gifts are not taxable gifts to the recipient. An individual that is giving the gift can make as many gifts to as many individuals as they would like. The donor would need to pay attention to the annual exclusion amount to an individual which is $13,000 per recipient per calendar year. If the donor gifts more than the annual exclusion amount for a sole recipient then they would need to file a gift tax return Form 709.
A parent sells their land and homestead for $100,000 and immediately divides it up equally as gifts to their three adult children. Are these gifts taxable to the children?
Gifts are not taxable income in the US. This means that any recipient of a gift would not incur taxes on that gift. In addition the recipient does not need to report the gift on an income tax return. Donors of gifts would need to file a gift tax return if they give gifts that exceed the annual exclusion amount per individual recipient. They will not be liable for any gift taxes unless they exceed their lifetime exclusion amount which is currently set at a little more than $5 million.
My spouse died in November 2009. I want to gift the maximum allowed under NYS law to each of my children without it becoming a taxable gift. What is the amount that makes a gift taxable?
Gift taxes are governed by federal law not by state law. Donors of the gifts would be subject to taxes if their gift was a taxable gift. If a donor gives a gift of $13,000 or less to a recipient in a calendar year then there would be no tax on the gift. If the donor gave more than $13,000 to a recipient in a calendar year the donor would have to file a gift tax return but still might not have to pay a gift tax if they are under their own personal gifting exclusion amount. The lifetime gift exclusion amount is just a little over $5 million.
Having the right facts and understanding of taxable gifts can help when faced with circumstances regarding gift taxes. Experts can help answer what a nontaxable gift is or if there is a limit on the amount an individual can receive before the gift becomes taxable. Get the answers fast and affordably by asking an Expert.
Recent Taxable Gifts Questions
My 90 year old mother is a US citizen who has lived in Canada
My 90 year old mother is a US citizen who has lived in Canada for the last 40 years. She is about to die and will be leaving me a bank account with a six figure balance. I've been a cosigner on this account for some time, and by Canadian law this account is excluded from her legal estate - the ownership of the account will be mine at her death. My questions:
- what US IRS forms should her estate in Canada file if any? She hasn't filed a US tax return in many years I'm sure.
- what forms do I file to account for the money when I transfer it here to the US after she dies, and then what forms to account for it on my annual tax return?
- my understanding is this amount (US $150K) should not trigger estate or gift taxes. Correct?
My father passed away in brazil and I will inherit 33million
my father passed away in brazil and I will inherit 33million dollars. What will be my major tax concern if i decide to transfer this money to the US
I have a client that passed away in on 3/30/10. She resided
I have a client that passed away in on 3/30/10. She resided in NJ. The value of her assets are approximately $1,400,000.00. The breakdown is $600,000.00 stocks and bonds and her main residence $800,000.00. She has one sole heir. No returns have been filed so far. The residence just got sold in 2015. The brokerage accounts still pay dividends and are held jointly with her daughter the sole heir. What tax returns need to be filed.
View More Tax Questions
5 Tax Professionals are Online Right Now
Ask Your Own Tax Question
Ask Your Question Now
Ask a Tax question
Type Your Tax Question Here...
5 Tax Professionals are Online Now
In The News
How JustAnswer Works:
Ask an Expert
Get a Professional Answer
Ask Followup Questions
100% Satisfaction Guarantee
Ask a Tax Professional
Get a Professional Answer. 100% Satisfaction Guaranteed.
5 Tax Professionals are Online Now
Type Your Tax Question Here...
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.
Become a Professional
Terms of Service
Privacy & Security
© 2003-2015 JustAnswer LLC