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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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