Have a Tax Question? Ask a Tax Expert
Thank you for using Just AnswerThere is a limit on gifts that someone can give an individual in a year. Right no that limit is $13000. This means that eash sposue could give $13000 ($26000 together) to one person and then to another and another ..... without going over he yearly limit.If they go over the limit then the giver must file form 709 reporting the amount over the limit. If they reach $5mil in gifts over the limit in the lifetime, the GIVER must pay gift tax on the amount.There is no deduction allowed for giving gifts to individuals.
If you paid more than half of the support of your mother she may qaulify as a dependnet for you but no gifts to her are a deduction from taxes for you.
Gifts vs. cash, are they one in the sme, and if not, what line on the 1040 do you enter cash instead of gifts?
Cash is gift too. Cash gifts are not deductible to the giver (unless made to a charitable organization) nor are theyr taxable to the person that receives the gift (cash included). If someone gives anyone person more than $13000 (yearly limit for 2011 and 2012) then the giver must file form 709 to report the amount over $13000. There would be no GIFT TAX to pay by the giver until in their lifetime they gave away $5mil over the yearly limits.