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RD, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 8784
Experience:  CPA, MBA, Over 10 yrs of experience in tax planning and business consulting..
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how much is a gift of 25,000 dollars taxed

Resolved Question:

My parents gave me and my wife a gift of 25,000 dollars to help purchase a house. How is this taxed?

Optional Information:
new haven , Connecticut

Already Tried:

Submitted: 11 years ago.
Category: Tax
Expert:  RD replied 11 years ago.
Your Parent are each entitled to the annual exclusion amount on the gift. Together, they can give $24,000 to each donee in 2006 without paying any gift tax.

So they will not have to pay any gift tax or file gift tax return as long as the gift is below $24000 for each donee if the parents combine on the gift.

Let me know if you have any question.
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Please note: This advice is based on limited facts provided by you. Since it is impossible for me to identify and consider ALL the relevant facts, this advice is not intended or written to be used for the purpose of avoiding penalties, and cannot be used for that purpose.

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