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Started By
Message
Gifting cash and taxes
Posted on 10/14/15 at 10:53 am
Posted on 10/14/15 at 10:53 am
a friend in California won money in the lottery, he wants to send a friend in Louisiana a cash gift ($9000.00 or so).
Since the winner will pay taxes on the winnings, does the receiver of the gift pay taxes too?
Since the winner will pay taxes on the winnings, does the receiver of the gift pay taxes too?
4
Posted on 10/14/15 at 10:58 am to MorgusTheMagnificent
I believe you can receive $14,000 per year as a gift from an individual and not be taxed, but I very well could be wrong.
Posted on 10/14/15 at 11:00 am to MorgusTheMagnificent
quote:A receiver of a gift never pays taxes. Only the gift giver pays the taxes. However, as long as the gift is under a certain amount (currently 14k for the current tax year) the giver of the gift doesnt have to pay anything
a friend in California won money in the lottery, he wants to send a friend in Louisiana a cash gift ($9000.00 or so). Since the winner will pay taxes on the winnings, does the receiver of the gift pay taxes too?
Posted on 10/14/15 at 11:01 am to LNCHBOX
quote:Recepient does not ever pay the tax
I believe you can receive $14,000 per year as a gift from an individual and not be taxed, but I very well could be wrong.
ETA: Unles it is agreed upon before the gifting that the receiver of the gift will pay the taxes
This post was edited on 10/14/15 at 11:05 am
Posted on 10/14/15 at 11:38 am to MorgusTheMagnificent
Similar question to OP-
What if a parent "gifted" $35,000 to their child to help with a down payment on a house. Then the child paid the parent back within 3 months. Does the parent have to pay taxes?
What if a parent "gifted" $35,000 to their child to help with a down payment on a house. Then the child paid the parent back within 3 months. Does the parent have to pay taxes?
Posted on 10/14/15 at 11:49 am to TigerTatorTots
No taxes. That wasn't a gift, it was a loan. If the child paid any interest than the parents would have to pay taxes on the interest received
Posted on 10/14/15 at 11:50 am to lsupride87
Posted on 10/14/15 at 7:03 pm to MorgusTheMagnificent
A sidebar on Gifting:
Tuition gifting is allowable by the IRS in unlimited amounts.
Example:
Grandma is wealthy and liquid.
The Grandkids go to Harvard University.
Grandma can pax their entire tuition bill there (~$47k/year each) and the kids have no Federal tax liability for the value of her tuition payment from which they benefited.
Tuition gifting is allowable by the IRS in unlimited amounts.
Example:
Grandma is wealthy and liquid.
The Grandkids go to Harvard University.
Grandma can pax their entire tuition bill there (~$47k/year each) and the kids have no Federal tax liability for the value of her tuition payment from which they benefited.
This post was edited on 10/14/15 at 7:04 pm
Posted on 10/15/15 at 10:02 am to soccerfüt
quote:
Grandma can pax their entire tuition bill there (~$47k/year each) and the kids have no Federal tax liability for the value of her tuition payment from which they benefited.
The kids would not have had federal tax liability anyway. Posted on 10/15/15 at 12:33 pm to soccerfüt
Would grandma be able to write off the tuition as a charitable donation?
Posted on 10/15/15 at 1:50 pm to TigerTatorTots
No the gifter would file a gift tax return and do an accelerated amount and it would deduct it from their lifetime gifting amount. You can give up to $5mill and some change in your lifetime to someone and not pay gift tax. Every year you gift over $14k it is deducted from the maximum
Posted on 10/15/15 at 3:18 pm to MorgusTheMagnificent
No. In order for a charitable donation to be legitimate, the donation must be given to a qualified organization.
Just because someone is in need doesn't make them a qualified organization. See irs publication 526
Just because someone is in need doesn't make them a qualified organization. See irs publication 526
Posted on 10/15/15 at 4:18 pm to LSUtoOmaha
quote:If you gave each of the kids $47k in cash per year they would.
The kids would not have had federal tax liability anyway.
Posted on 10/15/15 at 4:41 pm to soccerfüt
quote:
If you gave each of the kids $47k in cash per year they would.
quote:
gave
Giving the kids 47K in cash would not result in any tax liability to the recipient.
Giving the kids 47 billion in cash would not result in any tax liability to the recipient.
Posted on 10/15/15 at 10:04 pm to LSUFanHouston
Correct.
You know what I meant.
Happy?
You know what I meant.
Happy?
Posted on 10/16/15 at 9:45 am to soccerfüt
That's not what you were saying.
Posted on 10/16/15 at 12:38 pm to soccerfüt
quote:
You know what I meant.
No, I didn't know what you meant, it seemed like you were clear in what you said, so that's why I responded.
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