re: Best Approach to Accepting Large Cash Gift? What should I do with it?

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So could I technically get $14K and my wife get $14k in the same year and be exempt if we file taxes jointly?

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Just be careful. Consider the state of your marriage before you do this.

I'm not sure about all states, but in community property states gifts are considered separate property. So, if your uncle gives you the $14K every year, that $14K is YOURS as your separate property in the case of a later divorce. Just be sure not to commingle it and trace where it goes (i.e., to pay off portion of house). If he also gives your wife $14K, then that is HERS. She takes it in a divorce -- even if it's 20 years later.

As far as the $14K amount, how much your uncle gives you on a yearly basis is irrelevant to you. However, if he gives you more than $14K then he'll have to file a gift tax return. Unless he's worth more than $5.45 million ($10.9 million if he's married), then it's no big deal. He simply files the gift tax return and takes the amount over $14K from the $5.45 million amount. Unless he eventually becomes worth more than $5.45 million, it will never really effect him.

For you, there are no effects. Gifts are generally not taxable to the recipient no matter how large.

Like I said, though. Be safe and separate those funds in a separate account and keep records of exactly how you spend them. You never know when your wife just might start craving the BBC.