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I received 3 financial gifts over the last year from my

Mother. Three checks, one for...
I received 3 financial gifts over the last year from my Mother. Three checks, one for 4,000, one for 8,000, and one last one for 14,000. I have not deposited the one for 14,000 yet. I was not sure what rules or guidelines I should worry about. The checks for spread out over 14 months or so. Should I just want walk into my Bank of America and deposit the 14,000 check? I am just looking for advice on the situation and to avoid any headaches. The money was to help with credit card debt. Thank you.
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Answered in 5 minutes by:
3/19/2018
bkb1956
bkb1956, Finance Enthusiast
Category: Finance
Satisfied Customers: 6,688
Experience: IRS Enrolled Agent, 20+ years of experience in tax preparation with associated finance experience.
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Welcome to Just Answer. My name is ***** ***** I will be happy to assist you.

Gifts are not taxable to the recipient (receiver) in the U.S.

The donor (your mother) has a REPORTING requirement because the total of the gifts exceeded the annual exclusion amount of $15,000. She will report the gifts on Form 709, but will not owe any tax unless she has exceeded her lifetime gift cap of $11 million+

https://www.irs.gov/forms-pubs/about-form-709-united-states-gift-and-generation-skipping-transfer-tax-return

Feel free to deposit the $14,000 check.

Please let me know if I can assist you further.

Thank you and best regards,

Barb

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Customer reply replied 5 months ago
I am not sure my mother knew to do that. Should she notify her accountant? She already filed taxes for 2017. So it sounds like, beyond that, I do not have to do anything on my end? Will my bank be suspiscious?
Customer reply replied 5 months ago
I actually just realized. The first 2 checks were in 2017, for a total amount of about 11,000. ( 7k and 4k), and this third check for 14,000 I just recieved, and it is in 2018. Does that mean that she did not exceed the 15,000 gift amount for neither year, and she is okay?

That's right.

I was under the impression all gifts were given in the same year.

Your bank will not be suspicious about the deposit.

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Customer reply replied 5 months ago
Lastly, i did read that there are laws about splitting up large gifts into smaller chunks, and it can get you in big trouble. Do I have do be worried about breaking this law, or my mom breaking it?

Not in this instance.

bkb1956
bkb1956, Finance Enthusiast
Category: Finance
Satisfied Customers: 6,688
Experience: IRS Enrolled Agent, 20+ years of experience in tax preparation with associated finance experience.
Verified
bkb1956 and 87 other Finance Specialists are ready to help you
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Customer reply replied 5 months ago
When would someone worry about breaking that law, of breaking large deposits into smaller amounts?

Usually it's a method used by money launderers.

As I mentioned, I don't believe you should worry about the gift from your mother.

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