My father received an inheritance from my late grandfathers estate, and he decided to gift me and my brothers an extremely generous check as a Christmas gift.
The amount of money is significant enough to give me pause regarding the tax implications of me depositing this check. I know that after a certain gift amount that you are legally required to report it as income on your taxes, however he said that this is not true in this case because he "had handled it on his taxes" but was being cryptic about what that actually means. I pressed for more information and he said not to worry about it because he consulted a tax attorney and they "figured it out".
I dont want to seem ungrateful and pry, I am truly floored by the extreme generousity and I realize this is a good problem to have. At the same time I want to make sure I dont break any rules and get penalized by the IRS.
Can the giver of a gift take ownership of the taxes on it? What is the maximum amount of a gift for that matter that can be given before needing to claim it as income?
I am in the US in the state of PA.