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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29967
Experience:  Taxes, Immigration, Labor Relations
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can my parents give me $100,000 tax free this year. They have

Resolved Question:

can my parents give me $100,000 tax free this year. They have never given me money before from the estate. Does this 100,000 fall under the $1,000,000 over a lifetime? I know it's obviously more than the $13,000 gift allowance per year. I am confused as to the differnece.
Submitted: 7 years ago.
Category: Tax
Expert:  Lev replied 7 years ago.

There is no limit on the gift value - you may give any gift - but should consider tax consequences.

 

A recipient of the gift - does not need to claim it as income. Please see for reference IRS publication 525 page 33 - http://www.irs.gov/pub/irs-pdf/p525.pdf

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The donor - if he/she is an US person - would be required to file gift tax return if the gift is more than $13,000 per person per year (for 2009). There will not be any gift taxes unless lifetime limit of $1,000,000 is reached.

There is an unlimited gift tax exclusion available to pay someone's medical or educational expenses.

 

In your situation - your parents need to file gift tax return.

As each gift your $50,000 - taxable gift is $50,000-$13,000=$37,000.

So after that gift - each still will have lifetime limit $1,000,000-$37,000=$963,000

Let me know if you need any help.

 

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