Tax

Have a Tax Question? Ask a Tax Expert

Ask an Expert,
Get an Answer ASAP!

Tax

Hi there, I wonder if you could help me. My wonderful mom is

Customer Question
giving me 40k to help...
Hi there, I wonder if you could help me. My wonderful mom is giving me 40k to help me get out of some insane high interest credit card debt. My question is what is the best way, tax wise, to go about handling this transaction. I will be paying off the cards immediately with this money. Would i be taxed on this money if she deposits it into my account? She lives in South Carolina and I live in GA. Or would the credit card companies let her make the payments? i would rather not hassle her with that if I don't have to. thanks!
Submitted: 7 years ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 1 hour by:
8/12/2010
Tax Professional: Chad Oberg, Certified Public Accountant (CPA) replied 7 years ago
Chad Oberg
Chad Oberg, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 174
Experience: 10 + years of accounting and tax experience, financial statements and business planning
Verified
Chat Conversation Ended

If you are still working with your Expert on this question, you can post additional replies and receive additional information on this page.  If you received a satisfactory answer in Chat, you can accept the chat conversation above.
Ask Your Own Tax Question
Tax Professional: Chad Oberg, Certified Public Accountant (CPA) replied 7 years ago
Chat Conversation Started
Ask Your Own Tax Question
Tax Professional: Chad Oberg, Certified Public Accountant (CPA) replied 7 years ago

An individual can gift up to $13,000 per recipient for 2010 and not subject to the tax. In a marriage, a couple can pool their individual gift exemptions to make gifts worth up to $26,000 recipient. So, if your parents are married, they could gift you $26,000 without any tax consequence. What you may consider is having them gift $26,000 now and $14,000 during 2011, if they are married or $13,000 now and $13,000 during 2011, if you mom is single. Please see the attached publications and documents from the IRS:

 

http://www.irs.gov/businesses/small/article/0,,id=224515,00.html

 

http://www.irs.gov/pub/irs-pdf/p950.pdf

 

If you have any questions, please do not hesitate to contact me. If you do not have any questions, please accept my answer and thank you for using Justanswer.com.

 

Regards,

 

CEO, CPA

Ask Your Own Tax Question
Customer reply replied 7 years ago
Ok. so my understanding is she can give me 13,000 (she's single) this year and 13,000 next year without my paying taxes. But if she gave me 13,000 this year, then the rest next year (27,000) I would be taxed on 14,000, is this correct? How much would I be taxed on that amount? thanks!
Tax Professional: Chad Oberg, Certified Public Accountant (CPA) replied 7 years ago

No, you would never pay taxes on these gifts. Your mom is responsible for paying the gift tax and filing a gift tax return if amounts to any one individual go over the $13,000. If the amount is $13,000 or under each year, there is no filing requirement and you and your mom pay no tax. The only requirement is that you mom keep track of all the gifting throughout her life because this amount will reduce her lifetime exclusion.

Chad Oberg
Chad Oberg, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 174
Experience: 10 + years of accounting and tax experience, financial statements and business planning
Verified
Chad Oberg and 87 other Tax Specialists are ready to help you
Ask your own question now
Customer reply replied 7 years ago
Ok. I understand. That's great news! Thank you!
Customer reply replied 7 years ago
Ok. I understand. That's great news! Thank you!

Ask Chad Oberg Your Own Question
Chad Oberg
Chad Oberg
Chad Oberg, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 174
174 Satisfied Customers
Experience: 10 + years of accounting and tax experience, financial statements and business planning

Chad Oberg is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,300 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,310 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

Robin D.

Robin D.

Senior Tax Advisor 4

13,695 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,651 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

R. Klein, EA

R. Klein, EA

Enrolled Agent

1,839 satisfied customers

Over 20 Years experience

< Previous | Next >

Related Tax Questions
Form 8300. We are doing a business to business transaction.
We are doing a business to business transaction. The form is not clear on how to compete. Do we complete Part I f … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
What is the effect of the latest tax changes on individual
what is the effect of the latest tax changes on individual income taxes for individuals in the $60-70,000 range with no special deductins? … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
On october 30th I mailed form dt individual to the IRS in
on october 30th I mailed form dt individual to the IRS in Connecticut Certified mail showed it had been delivered on Nov 2 I have heard nothing … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
I have a question about gift of equity, gift tax, and
I have a question about gift of equity, gift tax, and capital gains … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,695 satisfied customers
What is the max. gift tax as proposed in 2017 and 2018 by
What is the max. gift tax as proposed in 2017 and 2018 by President Trump? … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Information on Gift tax return. My 100 year old mother wants
my 100 year old mother wants to gift the balance of a home loan to my brother, Balance is aprrox $35,000. What are the mechanics? … read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,483 satisfied customers
Can individual file a 2nd 9465? The original 9465 had a
Can individual file a 2nd 9465? The original 9465 had a balance due of $3100.after I had attached a ck for $2000.. IRS came back and said EIC wasn't a good claim so now you owe $7800.00 +. So I need a… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
This is a question regarding gift tax. I am and have been a
I am and have been a resident in Spain for many years. My only property is here and I work and pay my taxes here. My father who is a UK resient of UK nationality wishes to gift me his house. I will have to declare this gift to the Spanish tax office and pay the Spanish gift tax. Am I also obliged to pay the UK Inlad Revenue the gift tax even though I have already paid tax on the gift in Spain? … read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,483 satisfied customers
RE: FOREIGN TAX CREDIT We're filing a married joint filing
RE: FOREIGN TAX CREDIT We're filing a married joint filing tax return and have come up against some problems on form 1116. 1) Do we add both our names on the form? 2) On line 3a, it asks for certain i… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,483 satisfied customers
I have a question regading a gift tax. We (my fiancee and I)
We (my fiancee and I) are purchasing a home cash. Her father is providing the cash. He will have a lien on our new home and we will be paying him back in 6 months when we plan to refinance the home fully under our names. Because he is "gifting" us $400k+, what are the tax consequences for him? … read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,483 satisfied customers
I was just wondering about gift taxes and if a receiver of
I was just wondering about gift taxes and if a receiver of land would be liable for gift tax in the US if the person giving the gift and the land is in a different country … read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,483 satisfied customers
I'm. A have a question about gift tax. It's about rental
Hello! I'm Jane. A have a question about gift tax. … read more
Richard
Richard
Tax Attorney
Doctoral Degree
4,310 satisfied customers
The $14,000 gift tax exemption per person - can the gifts
The $14,000 gift tax exemption per person - can the gifts only be transferred to spouses and children or can it be given to son-in-law?… read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,226 satisfied customers
IRS - If an individual raises money through Go Fund Me and
IRS - If an individual raises money through Go Fund Me and has it contributed directly to the company that he is majority shareholder of, what are the tax implications? The amount exceeds $500,000.… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Is there a gift tax involving for an none US resident to
Is there a gift tax involving for an none US resident to gift to another none US resident ? … read more
ABC Accounting Group
ABC Accounting Group
Bachelor\u0027s Degree
682 satisfied customers
Applying for IRS Individual Taxpayer Identification Number,
Applying for IRS Individual Taxpayer Identification Number, the website states that I need to attach a valid federal income tax return, unless qualified as an exception, and include your original proo… read more
Phillips Esq.
Phillips Esq.
Attorney
Juris Doctor
17,996 satisfied customers
I've prepared gift tax returns for my mom's trust for three
I've prepared gift tax returns for my mom's trust for three years. I've shown 100% of all funds put into the trust in the year funded. All gifts have been in cash and are immediately available for dis… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
How do I have to amend a Gift Tax return? The original
How long do I have to amend a Gift Tax return? The original return did not indicate that the gift should be part of the lifetime gift tax exclusion. I want to correct that mistake. The gifts totaled a… read more
keeperumiami
keeperumiami
Sr Financial & Tax Consultant
Bachelor\u0027s Degree
1 satisfied customers
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.

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.

Show MoreShow Less

Ask Your Question

x