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Gifts of money from family

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Money Talk > Taxes

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mikeemerder
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Gifts of money from family  Reply with quote  

If we as a married couple receive a gift of $10,000 from a parent(s), is that taxable? I'm not quite clear of the gift tax, but from the IRS website it seems like we are not required to report it as income. Am I correct?
Post Mon Mar 25, 2013 5:17 pm
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clydewolf
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Re: Gifts of money from family  Reply with quote  

quote:
Originally posted by mikeemerder
If we as a married couple receive a gift of $10,000 from a parent(s), is that taxable? I'm not quite clear of the gift tax, but from the IRS website it seems like we are not required to report it as income. Am I correct?

That is correct. The giftee does not pay income tax on the gift.

If you itemize your deductions, and use the State and Local Sales Tax as a deduction instead of State Income tax, you would want to include that $10,000 gift in the amount you use to determine your sales tax deduction when you use the tables the IRS provided., even if you did not spend that gift.
Post Mon Mar 25, 2013 5:32 pm
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littleroc02us
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There isn't anything you have to do, we received a gift this year of exactly the max gift amount and all that the irs wants to know from the giver is where the money went by filling out a gift tax form. Easy as pie!

Risk comes from not knowing what you're doing. (Warren Buffet)
Post Mon Mar 25, 2013 5:56 pm
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