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Tax.appeal.168
Tax.appeal.168, Tax Accountant
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We had an auction sale equipment if we give part of the

Customer Question

we had an auction sale for farm equipment if we give part of the proceeds to our children do they have to pay tax on it
Submitted: 1 year ago.
Category: Tax
Expert:  Tax.appeal.168 replied 1 year ago.

Q: we had an auction sale for farm equipment if we give part of the proceeds to our children do they have to pay tax on it

A: No, the proceeds to your children can be treated as a gift. If the amount is less than $14,000 that you give each child, you don't have to report it, nor does the person receiving the gift have to report it. The current gift rule is that a U.S. person can gift another U.S. person $14,000 per year without creating a taxable event.

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