Questions tagged [gift-tax]
This tag is to be used for any question pertaining to gifts received and taken and applicability of taxes. If this tag is used, ideally a country-specific tag should also be specified, to indicate which region a question belongs to, as the answer may differ based on the country. Related tag is "income-tax" for question related to income.
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Taxes when transferring money
I'm a US taxpayer (non-resident alien) and I'm being pushed by a friend to do the following:
He will transfer 40k from a US bank account that he owns to my personal account.
I will withdraw this ...
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I am a Canadian resident who wants to gift my Adult US child CAD$175K. What are the tax implications?
I am a Canadian resident who wants to gift my adult US child $175K Canadian. What are the tax implications for the US resident who resides in California?
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How could George Clooney have paid his friends' taxes?
According to an article published today in several media outlets including Fortune magazine, George Clooney once gave 14 of his friends $1 million dollars cash. The article also claims that Clooney ...
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I am distributing an inheritance based on verbal bequests. Is this considered a gift that must be reported to the IRS?
Before my mother died recently she gave me a verbal list of bequests she wanted to make that were not in her will. Some of these exceed $14k. I will be paying them out of my own bank accounts with ...
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Do I pay gift taxes in US, if I send money (>$15000) to my father in India?
I am in the US on F1 visa - OPT, I need to send money to pay off my student loan in India. I have already sent about $25000 to my dad, who has paid it to the bank for my student loan and I am planning ...
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Can you gift someone money for purpose of investing to avoid capital gains upon inheritance?
After reading through information on capital gains tax and estate tax, I read that a heir of an investment does not have to pay capital gains on that investment. That is it's transferred free and ...
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Dad gifting me a house for 2 years, how to deal with taxes?
My dad is moving to Florida. He loves the house he has in New York. He wants it to stay in the family but I can't quite afford the mortgage yet. I have a wealthy cousin who said he'd hold the NY house ...
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Tax implications of paying someone else's medical bills
If I wanted to help pay a significant sum towards an extended family member's (in-laws) medical bills, would that be subject to any kind of gift tax or similar? Just for an example say I wanted to pay ...
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Father wants to gift child with approx $200k. Smartest way from USA tax perspective?
The father would like to find the best way to help his (~40 year old) daughter with approximately $200k in home loans.
Without (yet) seeking professional advice, he has loosely considered:
Gifting ...
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If I repaid a monetary gift, is still considered a gift by the IRS?
My mother lent my husband & me $200K to close on our new house, but our mortgage broker made her sign a letter declaring the $200K a "gift," since he was concerned that our home loan wouldn't be ...
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Is it a gift or not?
IRS rules are not always black or white, and something that I find myself struggling with is what is considered a gift.
Hypothetically, suppose I am moving soon and have a broken leg so I cannot do ...
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How to avoid having my father's down payment assistance get taxed as a gift
My father has offered to pay up to $70k towards a down payment on a condo for my wife and me. I understand that gifts of over $13k get taxed pretty heavily. Is there a way to avoid this when it comes ...
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How should my daughter give me money. Do I need to report it?
I am from Texas.
My daughter wants to give me about $13,000. What is the legal way of getting that money and do I need to report it on my income tax?
My state does not have state income tax, only ...
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Does IRS count paying mortgage principal as taxable income from family?
My parents offered me a generous gift, specifically they want to pay off $10,000 of my mortgage principal (the mortgage is under my name, not theirs).
However, I am hesitant to let them do this, as ...
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How does tax work with donations?
My understanding of the gift tax is that the donor has to pay the tax, but up to a limit they don't have to pay tax.
I'm a developer. Suppose I offer my software/libraries/blog for free on my site ...
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Should I take out a loan vs pay off with mother's help?
I'm considering buying a house for 200k.
When buying place ($200k), I will be paying 120k as down-payment, and financing the rest. I am thinking of my mother pay an additional 80k (to buy the place ...
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Does a gift to a baby that's accepted by a parent count as a gift to the parent?
I live in the United States, and I recently had a baby girl. My mother would like to give her some money by check, but the baby doesn't have a bank account yet. I've read that I should be able to ...
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When funding a trust does the gift tax exemption apply?
I'm researching setting up a bypass trust with my spouse. When I fund the trust, do the funds/property that I put into the trust count against the annual or lifetime gift tax (a.k.a. transfer tax) ...
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What are the US gift tax rules for gifts from non-US persons?
I am a US permanent resident for several years now.
My family resides overseas and are not-US persons - they visit on tourist visas. They have bank accounts here in the US.
I am planning to buy my ...
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Can yearly tax free gifts to a person in the U.S. be sent in multiple checks?
I'd like to give someone a monetary gift, well under the current $14,000 Annual Gift Tax Exclusion limit; however, I'd like to send them multiple checks throughout the year. I'd heard about this in my ...
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How much in gifts can I receive per year in the US?
After reading IRS Pub 950 it appears one couple can gift another couple up to $56,000 per year. My question, how much can one receive per year?
For example, take my girlfriend and me: Can we receive $...
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Avoiding estate tax by giving multiple gifts
From my understanding in the US, a father can give an individual gift of $15,000 to a child (or anyone) without any tax liabilities and without impacting the lifetime allowance. If the father wants ...
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Tax Consequences of a Gift
A family member intends on gifting us a sum of $70,000 towards the purchase of a new home. My question is - will that family member owe any gift tax on it?
I have been reading sources that appear ...
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If my fiance gifts me $18K and we get married before the end of the year will the gift tax apply?
My fiance and I are trying to buy a house. The loan is in my name, but he would like to pay for $18K worth of closing costs. The plan is to close the deal by 10/21/2013. If we get married by the end ...
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Best way to transfer abroad loan amount to Indian parents Savings Account
Can you please advise:
I am working in Dubai, and applied for a loan of 25 lakhs, I would like to use this funds to repay my personal loan (to relatives) and want to buy a land with left out money. ...
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Money transfer from India to USA
My daughter is a US Citizen. We (parents)are also planning to permanently settle in US. We will go their as Permanent Resident,as per US Law. We have a house here in India worth Rs.2 Crores. We want ...
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How do I handle taxes on a very large "gift" from my employers?
My husband just received a $700,000 "gift" from the partners at the organization he has worked for for over 13.5 years.
These particular partners sold their share of the partnership, making an ...
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Can I pay my partner’s income tax (Canada)
I net approx. twice what my spouse does. At income tax time can I pay her income tax for her so she has more money to invest in her retirement savings account (RRSP)?
I know that if I were to give her ...
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Can I gift money out of a UTMA account to my child's sibling?
My Father gifted $50,000 to my daughter over a 5 year period. This money is in a UGMA account on my daughter's behalf. I now have three children. My father's intent was to provide for all of my ...
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Pay for my parent's PLUS loan - tax implications?
I recently payed off my college loans and now want to pay for the PLUS loans that my parents took out to pay for my education.
Does the gift tax apply if I pay the loan provider directly? I'm not ...
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Payoff of student loan by parents
My son recently graduated from medical school with a student loan of ~ 200K. He will be a resident fellow for the next 7-8 years with 60-80k annual income. My wife and I have some cash and are willing ...
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Using the gift exception to get more money to charity
Like most middle class families after the 2018 tax code changes, even with a mortgage I'm very far from being able to itemize. Looking at how to optimally give to charity, it seems like a shame to not ...
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Can someone explain in simple and direct ways how the gift / donation tax works for a lottery winner?
My jackpot money is cleared in the bank with all its federal/state/city/village/building taxes paid in full. Now I want to start giving money away. What will be the tax implications if I give or ...
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Is it possible to pay off a friend's debt without them being taxed on it?
I'm in England.
Let's say my friend has £45,350 salary, and a credit card debt of £5,000. Were I to pay that debt off for them, would that £5,000 from me count as income, increasing their tax bill? ...
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Am I able to conduct a private sale of public shares at a price that I determine?
I was wondering if it were at all possible to sell my own shares to someone specific at a price I determine?
Let's say I have $1,000 worth of an arbitrary publicly traded company and I wanted to sell ...
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Tax implications in India for sending money to India from US
I am planning to transfer around $8K-10K in my parent's bank account(Joint bank a/c) in India . I have read a lot of posts(like Will I have to pay taxes in India when I transfer money from a US bank ...
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Would there be issues with giving someone a gift out of a joint account if the total is over the annual limit per person?
My sister and I would like to give another relative $25,000 as a gift. We have a joint bank account together, and had planned on writing a single check from the joint account for the full amount. We ...
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Gift Tax Exemptions in the US
I recently married and am planning to buy a house, my parents would like to assist us by giving a gift to put into the house. The limit for this year is 13000, now my question is, is this limit per ...
Timophy
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Is a gift always a gift on both ends?
Suppose some person with a lot of cash jumps into a Twitch stream they like and gives the streamer $20000. (This would be on the high end for Twitch donations, but nowhere near record-setting.)
From ...
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Tax implications of currency exchange between friends?
I am a US and French citizen and have bank accounts in both countries. One of my friends is a Permanent Resident in the US and also has French citizenship, with bank accounts in both countries.
I ...
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After the sale of my company, I’d like to make a cash gift to a friend who worked as an employee of my company
The cash gift will be paid from my personal bank account from the proceeds of the sale of the company. I will have already paid appropriate tax on the proceeds received from the sale as per the rules ...
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Is it legal to receive/send "gifts" of Non-Trivial Amounts to a "friend"?
This can be illustrated in many ways. But for the sake of a concrete example, let's assume a sample scenario: We have an employer (Mr-A) and his employee (Mr-B) also happens to be his "good friend". ...
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Giving kids annual tax free gift of $28,000
We are planning to pay for kids' education using the annual $28,000 limit of tax free gift. Do we have to send money from each parent's single bank account? If, for instance, I send $28,000 from my ...
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gift is taxable but is "loan" or "debt" taxable?
For tax purpose in the US, what are the differences between
(a) you give away your money - gift tax?
(b) you loan someone some money - tax free?
(c) you pay back the debt you owe - tax free or tax ...
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How to claim gift aid for funding a local park
Our parish in England is fundraising to support improvements for the local park.
As the park is owned by the council, and they are not a charity, there is no gift aid.
However; Clearly this is very ...
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Selling Gifted Stock - Capital Gains, Gift Tax, AGI/Deductions
My wife and I received a gift of $100k stock from a relative two months ago. Cost basis of the stock was $30k, purchased by that relative 5 years ago. We hope to sell the stock to use for a down ...
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Transfer large amount of money from one Wells Fargo account to another
I'm helping my fiance pay off her student loans. We both have Wells Fargo accounts. What is the quickest and cheapest way to transfer a large amount, say $20K or more, to her account? I'd prefer to ...
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Do political campaign contributions count as gifts for tax purposes?
If I donate to a standard U.S. (non-charitable) political campaign,
does that amount reduce my annual and/or lifetime gift allowance?
do I have to report that amount somewhere on my federal tax ...
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Does money borrowed from other people in U.S. need to be reported in tax report?
I have a friend who is willing to lend me some money (about 40k dollars), since I am not financially well.
We are foreigners studying and working in the U.S. (F1 and H1 visas). We report taxes ...
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How does the bank/IRS know whether a bank transfer over $14k is a gift or loan repayment?
Suppose I want to help a relative, an international student, pay his college tuition before he arrives in the US (let's say the amount is $20k, i.e., over the $14k tax-exempt limit for gifts). He'll ...
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