Hello,
I was wondering about receiving cash gifts from my parents. I know they have to pay a gift tax, for gifts above the yearly limit (or I mean the amount over is counted against their lifetime exemption), but as someone who is receiving a gift, so I pay a tax on it as income. For example, if my parents were to give me 10k, they do pay any tax on that because it is below their combined yearly gift amount of 22k, but do I pay income tax for getting this 10k out of nowhere? I've searched all over the internet and basically all the webpages are written for the giver's perspective and not the receivers. Ok thanks.

-M

 

No gift tax return due if the gifts to you are under 22K from both parents. (Or under 11K if from a single donor.) Even if a return is due, it's likely that no tax will be owed.

Gift tax returns are due April 15 the year after the gift was made.

Generally speaking, you (as the donee) won't have an income tax issue. If you want more info, PM me.

 

Anybody can give anyone else 11K per year tax free for both parties. So your parents combined could give you $22K this year with no need for taxes on their part or yours.

 

$22k ... sounds like you're 2/3 the way there bro! (:

 

Hahaha, I had to think about that for a sec. Nope it's not for a s2000. Already got a 2003 350z and a 2000 Maxima but I like hanging around here more than the z forums
Now I'm looking for a garage to put them in. And a house attached to the garage would be nice

-Mike

 

i think you just keep your mouth shut and delete this post.??????

pretend your aunt gave you the $..... your neighbor..... your car salesman....

 

Or you found it in a hole in the backyard of the house you just bought.

 

^^ No way! I think "found money" would trigger an income tax. Better to get it as a gift.