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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 15738
Experience:  15years with H & R Block. Divisional leader, Instructor
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My daughter and I live in upstate NY. She would like to gift

Customer Question

My daughter and I live in upstate NY. She would like to gift me $58,500.00 and we have been told that up to $10,000.00 is tax free? So I am wondering what the tax would be on the remainder or if it would have to be gifted as a separate amount and then what would the tax be?
Submitted: 1 year ago.
Category: Tax
Expert:  Robin D. replied 1 year ago.


The $10,000 you were told about was the annual amount for gifts that did not have to be reported but that has increased to $14,000. The first $14,000 of the gift to you is not part of teh Gift Tax calculation and would not be taxable to your daughter.

The remainder is reported on form 709 by your daughter BUT there is also a lifetime allowance ($5.45 mil). As long as your daughter has not given away all her lifetime amount, she will not pay any tax on the remaining gift either.

She has to report the gift (because it is over the annual $14k) but no real tax to pay.

Please let me know if you need clarification. If you do not then a positive rating is appreciated so I get credit for the response. (look for the STARS or SMILEY FACES)

Expert:  Robin D. replied 1 year ago.

Checking to see if you responded