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Posted by denaman@hotmail.com on June 19, 2007, 9:31 pm
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My understanding is that if someone gifts you less than a
certain amount -- $11,000 -- you do not have to claim it on
your federal taxes.
What happens if multiple someones each give you less than
11,000 but the total aggregates to well over 11,000? Must
you pay tax on the aggregate?
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<< that may be imposed upon the taxpayer. >>
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<< The Charter and the Guidelines for submitting posts >>
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Posted by Bob Sandler on June 21, 2007, 5:44 pm
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> My understanding is that if someone gifts you less than a
> certain amount -- $11,000 -- you do not have to claim it on
> your federal taxes.
>
> What happens if multiple someones each give you less than
> 11,000 but the total aggregates to well over 11,000? Must
> you pay tax on the aggregate?
The person who receives a gift, or multiple gifts, does not
have to report it as income or pay tax on it, no matter what
the amount is. The rules that you are thinking of apply to
the giver, not the recipient. If someone gives more than
$12,000 (the amount was increased recently) to any one
person, then the giver must file a gift tax return and may
owe gift tax.
Bob Sandler
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by Mike Wellman on June 21, 2007, 5:44 pm
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> My understanding is that if someone gifts you less than a
> certain amount -- $11,000 -- you do not have to claim it on
> your federal taxes.
>
> What happens if multiple someones each give you less than
> 11,000 but the total aggregates to well over 11,000? Must
> you pay tax on the aggregate?
First, the exclusion from gift tax is now $12,000. But it is
important for you to understand that the person receiving
the gift does not claim any gifts on their tax return. It is
the donor that is primarily responsible for the tax and who
must file a gift tax return for gifts over $12,000.
If the donor is married and their spouse agrees, then the
exclusion would be $24,000. If you are married, each of you
could be given $24,000 from a married donor without trigger
a filing requirement..
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by Herb Smith on June 21, 2007, 5:44 pm
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> My understanding is that if someone gifts you less than a
> certain amount -- $11,000 -- you do not have to claim it on
> your federal taxes.
Gifts, of any amount, are always tax free to the recipient.
The GIVER has to file a Gift Tax return (not an income tax
return) if the gift (to any recipient) exceeds $12,000 in a
given year.
> What happens if multiple someones each give you less than
> 11,000 but the total aggregates to well over 11,000? Must
> you pay tax on the aggregate?
The recipient NEVER pays tax on a gift, or gifts, received,
unless the gift is resold for more than the gift amount.
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by Seth on June 24, 2007, 10:42 pm
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> The recipient NEVER pays tax on a gift, or gifts, received,
> unless the gift is resold for more than the gift amount.
Not quite NEVER. For instance, a very large gift (several
million $), then the donor dies insolvent without having
paid the gift tax.
Seth
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ------------------------------------------------------- >>
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