azgaby24
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You don't have to pay taxes on gifts. If your grandfather would have given you more than 12,500. he would have to report that gift and pay tax on that money, but he can give you up to 12,500 and neither of you need to pay tax. http://www.irs.gov/newsroom/article/0,,id=107815,00.html |
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Judy1
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No, there are no tax implications or reporting requirements on a gift that size for either the giver or the recipient. Neither gift nor income tax applies.
Say thanks, enjoy, and do something nice for your grandfather with a little bit of the money. |
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Jo Blo
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You wouldn't pay tax on a gift of cash no matter how large the amount. You grandfather can gift you up to $12,000. in one year without owing any tax on the gift himself. |
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bostonianinmo
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No, no tax is due on gifts you receive. Gift Tax is levied on the giver, not the recipient. If the gift is less than $12,000 in any tax year, no tax is due at all. |
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Rene F
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Gifts such as this are not taxable to the recipient. The giver of the gift is required to file a gift tax return if he/she gives more than $12,000 per year to any one recipient. As long as this is all your grandfather gave to you, neither of you has any reporting responsibilities or tax liability. In any case, you wouldn't have a tax liability regardless of the size of the gift. |
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snagglepuss731
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well, i have a solution for you. give me the money and then you dont have to worry about anything. hehehe. no, just kidding. you should be fine. |
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China
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No you don't need to report it.Its a gift you are supposed to just keep it. |
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who_wanna_kno_09
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no |
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Bailey
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i don't claim taxes on the money i get from my grandparents |
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MICon
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You have no issue. A gift received is never taxable income in the U.S. You can receive any amount as a gift and owe no taxes. Gift tax applies to the donor not the recipient. In this case even your grandfather owes no tax. Each person can give up to $12K per year to as many people as he desires and the annual exclusion applies so there is no tax. If your grandfather gives you more than $12K in one year then he will need to file a Form 709 Gift Tax Return but still may not owe tax. Each person has a lifetime credit and until it is used you do not start paying tax on gifts made even though you must file the return. You're all set just be sure to say Thank You. |
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Jen
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You don't need to claim the gift at all on your taxes. Someone can gift money to family up to I think $10,000 without anyone reporting it. |
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STEVEN F
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YOU never pay taxes on a gift to you. Your grandfather is not required to report the gift unless he gives at least $12,000 to one person in a single year. If he gives more in one year, HE has to file a gift tax return (different from income tax). That does not necessarily mean he owes gift taxes, just that a return is required. |
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acmeraven
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In 2006 you could get a cash gift of less than eleven thousand tax free. It is at least that in 2007; haven't checked to see if the ceiling has lifted past the 11k mark. |
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ME
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Any gift under $10000 is not taxed. |
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Meep!
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If it's cash, just take it. If you want to report it, do it when you file your taxes for this year. |
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Tim
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Wow. I've heard of people inflicted with this. A sense of "Honor" with your government. Like they are going to be honest with you since your being honest with them. Crazy. Just put the money in the bank and don't report it anywhere. You'll be fine. |
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Moondog
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Well - - - if the IRS isn't going to learn of it - which they won't - then unless you are the most honest person on the planet or perhaps panning on running for office - forget it. |
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princess angel 2207
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no you are safe as long as u don't go over 9,999 dollars.. and trust me the irs finds out. |
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shu
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this is pretty much the answer i have got from my Google research, just verify as follows
1. the one received cash gift do not have to report to IRS whatsoever
2. What if this cash is from oversea? And the giver has paid the tax in his (her) according to the law there?
3. Is there a max limit for this one time wire cash transaction from oversea?
4. Is there any tax obligation here in the USA?
3. |
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