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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29970
Experience:  Taxes, Immigration, Labor Relations
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If I give my sister & brother in law 9,000.00. Each do they

Customer Question

If I give my sister & brother in law 9,000.00. Each do they have to pay any taxes on it & do I. I already paid taxes when I took it from an Ira .
Submitted: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year ago.

As long as you own the money - you are free to use them as you wish and may gift to any person you wish.

No limitations.

In the US - gift - is not taxable income for the recipient and donees do not need to report it on the tax return.

There is no any amount limit.

It doesn't matter how the gift is transferred - as long as that is a gift - there is NO income tax liability.

Please see for reference IRS publication 525 -

http://www.irs.gov/pub/irs-pdf/p525.pdf

Gifts and inheritances. In most cases, property you receive as a gift, bequest, or inheritance is not included in your income. However, if property you receive this way later produces income such as interest, dividends, or rents, that income is taxable to you...

Expert:  Lev replied 1 year ago.

Another issue with gift tax...

Regarding your situation - if the donor (gifter) is an US person - the gift is reported on the gift tax return.

The gift below $14,000 - per person (donee) per year is not taxable gift but when the gift is above that threshold - it is reported on the gift tax return - form 709.

Regardless - there will NOT be any gift tax liability as long as the lifetime limit is reached - that limit is $5,430,000 for 2015.

However because your gifts are below that threshold - you would not need to report.