Gift tax problems

[komplex]

A family member and I received over $13,000 (each) from a parent (seperated recently) and I know over that amount I must pay taxes on it. I cant seem to find ANY information about the actual rate. Does anybody know the % to be paid? Is there a way out of it? I read about a one lifetime tax free gift of up to 1 million but once you use it - its gone. It was a check and given directly to me so theres no way to go back and re-do it. Any ideas?

[Infidel]

A family member and I received over $13,000 (each) from a parent (seperated recently) and I know over that amount I must pay taxes on it. I cant seem to find ANY information about the actual rate. Does anybody know the % to be paid? Is there a way out of it? I read about a one lifetime tax free gift of up to 1 million but once you use it - its gone. It was a check and given directly to me so theres no way to go back and re-do it. Any ideas?

http://www.google.com/search?q=gift+tax

and it is 12k not 13k

you are taxed at whatever rate that gift bumps your income to.

[komplex]

and if that is my only claimed income?

Thank you infidel

[Infidel]

Repeat after me

Google Is My Friend
Google Is My Friend
Google Is My ......... (http://www.google.com/search?&q=income+tax+table&btnG=Search)

[Tn...Andy]

Federal ( if that's what you are talking about ) gift taxes are paid by the giver, not the reciever. Don't know how the individual States treat them.

[Bob]

Do you have any kids? Cause that gift can be spread out over the kids too. So $12k to each you, your kids, your spouse.

[komplex]

I am the kid. Im in college. I wouldnt let my family member pay more taxes on what they gave me that would be very rude of me. Sense i started school i havent been working and have no income for this callender year. I didnt think i would have to file sense my income was zero untill this.

I did try to google it infidel i dont just lazely ask questions. I got different answers from different websites and even more confused. Some say giver has to pay, others say I would have to claim it as income.

[Tn...Andy]

Well....why not go to the website that will be the actual taxing bunch ?

http://www.irs.gov/businesses/small/article/0,,id=98968,00.html

If you give someone money or property during your life, you may be subject to federal gift tax. The money and property you own when you die (your estate) may be subject to federal estate tax. The purpose of this web page is to give you a general understanding of when these taxes apply and when they do not. It explains how much money or property you can give away during your lifetime or leave to your heirs at your death before any tax will be owed.

Most gifts are not subject to the gift tax and most estates are not subject to the estate tax. (Only about 2% of all estates are subject to the estate tax).

Generally, you do not need to file a gift tax return unless you give someone, other than your spouse, money or property worth more than the annual exclusion ($11,000 in 2002, 2003, 2004 and 2005; $12,000 beginning in 2006) for that year. Although a return may be required, no actual gift tax will become payable until the cumulative lifetime taxable gifts exceed the applicable exclusion amount. The donor is primarily responsible for the payment of the Gift Tax.

By the way....Infidel is correct....the above took all of 30 seconds and one google page to find.

[Jeffs47]

I am the kid. Im in college. I wouldnt let my family member pay more taxes on what they gave me that would be very rude of me. Sense i started school i havent been working and have no income for this callender year. I didnt think i would have to file sense my income was zero untill this.

I did try to google it infidel i dont just lazely ask questions. I got different answers from different websites and even more confused. Some say giver has to pay, others say I would have to claim it as income.


Don't forget that there are deductions and credits for college tuition. You would probably end up not paying.

[Tn...Andy]

AGGGGGGGGGG.......wish you hadn't re-quoted that, Jeff....


Komplex:

Sense: NOUN: One of the methods for a living being to gather data about the world; sight, smell, hearing, touch, taste. VERB: To use biological senses: to either smell, watch, taste, hear or feel, or to instinctively be aware, or to comprehend.

The word you're ( and did you notice that funny tick mark between the u and the r ? ) shooting for is: SINCE......a conjunction meaning "because".

I hope one of your courses is remedial English.


Grammar.....it's not just for old farts. :D

[komplex]

AGGGGGGGGGG.......wish you hadn't re-quoted that, Jeff....


Komplex:

Sense: NOUN: One of the methods for a living being to gather data about the world; sight, smell, hearing, touch, taste. VERB: To use biological senses: to either smell, watch, taste, hear or feel, or to instinctively be aware, or to comprehend.

The word you're ( and did you notice that funny tick mark between the u and the r ? ) shooting for is: SINCE......a conjunction meaning "because".

I hope one of your courses is remedial English.


Grammar.....it's not just for old farts. :D



I appolgize for the spelling error.

Yes I found that exact website fairly quickly as well but I do not understand exactly what it means or how it applies to my situation. I dont have much choice now but to see some one and just be out the money for the apointment. I received over double the amount in which taxes become applicable though not by much. Im not sure what percentage I might need to pay. Im saving out the amount I will need to pay I was just trying to find out if there was some universal tax rate for this. I will find out soon enough.

[Got Goldies]

I cents the bank wont know a gift made of Silver. Why did they ban Silver deposits? Because they dummer than the dumb.

[komplex]

It was a check. I didnt have a lot of time to really think about it and was quiet suprised to say the least. On top of that They went with me to the bank. Im saving most of it, physical (silver and gold), a 6 month CD account, and some in the stock market (less then 1,000$).

I have found different sources that say a tax must be paid period. Some say by giver and others by person receiving gift. Some say there is a one million limit for a lifetime and that as long as you dont excede that you dont have to pay. Its all very confusing.

[Got Goldies]

I dont know komplex. Making a large sized deposit like that will surely trigger a red flag.

I dont know what happens when you try to cash it.

[komplex]

They transfered it to a money order by the bank then direct into my account. That part is long over im just worried about taxes at the end of the year.

[Cassius]

I think he means he already cashed/deposited it.

[Got Goldies]

The rax man will want his share of the gifties. So what do you do? Cut him a checky.

[Kahlil Gibran]

I am the kid. Im in college. I wouldnt let my family member pay more taxes on what they gave me that would be very rude of me. Sense i started school i havent been working and have no income for this callender year. I didnt think i would have to file sense my income was zero untill this.

I did try to google it infidel i dont just lazely ask questions. I got different answers from different websites and even more confused. Some say giver has to pay, others say I would have to claim it as income.

:dontknow: Wot kollige u goin two?

[heynoww]

:dontknow: Wot kollige u goin two?

lol



BTW, Komplex, I am pretty sure you will not have to pay any taxes on this. However, whoever gave it to you, now that's a different story.

[komplex]

lol



BTW, Komplex, I am pretty sure you will not have to pay any taxes on this. However, whoever gave it to you, now that's a different story.


I wouldnt let them pay it.

[komplex]

I'm, wouldn’t, haven't, calendar, didn't, lazily.

You know I see spelling errors fairly regularly on this forum. The fact you have to go through and do that for no apparent reason means either you didn’t know the answer and just wanted to be a dick or you really have nothing else better to do in which case maybe you should consider looking into a hobby.

[heynoww]

I wouldnt let them pay it.


You would have to pay them back then. It's not about "letting", they will have to file a gift tax form for the $1,000 over the allowable amount they gifted to you; you cannot file it for them. I think...


Edited to add: I'm not saying they WILL have to pay a gift tax on it. They may or may not have to, but they will have to file the form for it.

[Got Goldies]

All they had to do was open an secured credit line and add you to the card. There nothing wrong with being a consumer hooked on plastic.

[me_ummagumma]

I'm, wouldn’t, haven't, calendar, didn't, lazily.

You know I see spelling errors fairly regularly on this forum. The fact you have to go through and do that for no apparent reason means either you didn’t know the answer and just wanted to be a dick or you really have nothing else better to do in which case maybe you should consider looking into a hobby.


sic the DUCK on him

hell tell em waht its about!

:s9:

[FoundingFathers]

It was a check. I didnt have a lot of time to really think about it and was quiet suprised to say the least. On top of that They went with me to the bank. Im saving most of it, physical (silver and gold), a 6 month CD account, and some in the stock market (less then 1,000$).

I have found different sources that say a tax must be paid period. Some say by giver and others by person receiving gift. Some say there is a one million limit for a lifetime and that as long as you dont excede that you dont have to pay. Its all very confusing.


Was the check from a joint account?? If so you have no worries - each person can gift up to $12,000 tax-free per year.

[komplex]

Not a joing account. If I had time to think about it before hand I would have done it differently but it was more of a "SURPRISE!!!!!!" type situation. Im starting to slowly understand what the IRS website is saying as I read more but I have a hard time with tax talk. I would give the amount they would have to pay back (if they have to pay) so I want to make sure I have that much saved out just incase. I have saved out 15% for that very reason.