If someone GAVE you....

  • Posted by a hidden member.
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    Feb 22, 2012 9:36 PM GMT

    I'll pose this as a hypothetical question for now...
    If someone close to you gave you $100,000, would you be required to report that as income to the IRS?? If it IS taxable, what would you call it (as far as "income" is concerned) ??

    Try to keep the snarky comments to yourself.... icon_rolleyes.gif
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    Feb 22, 2012 9:45 PM GMT
    http://www.irs.gov/businesses/small/article/0,,id=164872,00.html


    It's taxable on the federal level.

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    Feb 22, 2012 9:49 PM GMT
    ...and here's details on how you file (scroll half-way down) :

    http://www.irs.gov/publications/p950/ar02.html#en_US_publink100099451
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    Feb 22, 2012 9:49 PM GMT
    FriendsOnly said
    I'll pose this as a hypothetical question for now...
    If someone close to you gave you $100,000, would you be required to report that as income to the IRS?? If it IS taxable, what would you call it (as far as "income" is concerned) ??

    Try to keep the snarky comments to yourself.... icon_rolleyes.gif


    NO! They are required to report it as a gift. They then have to either pay gift tax on the amount above $13,000 or take $13,000 off their lifetime gift allowance of $1,000,000. Now, if they don't give you the cash directly, but, say, pay your college tuition directly, they aren't required to declare it. Also if they give money into a 529 that benefits you they can lump 5 years worth of $13,000 gifts, so $65,000. Check with a CPA about your specific situation.
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    Feb 22, 2012 9:52 PM GMT
    I actually depends on the conditions under which it was given. (I'm only addressing Federal tax here and not state and local taxes.)

    Did you do anything for it (not being snarky but literal) such as in sign for it, provide a service or item or agree upon something that required you accept it or acknowledge it's receipt via signature.

    Secondly, did they claim on their income taxes that they provided you, specifically, with this gift. Technically, if they give a gift greater than $10,000.00 in a single year, it's their responsibility to report it. You may not need to report it as the receiver but the giver has to report it.

    If none of those things were done, you don't have to claim it as income.

    This is based on tax law from about 4 years ago. I don't know if anything has changed in that time.

    "A gift" in terms of tax law is that which you've done nothing for. As an example, a winning lottery ticket is not a gift for 2 reasons. 1. You had to purchase the ticket. 2. You have to sign the ticket to collect the winnings.

    I should also point out for clarity that the Gift Tax that meninlove refers to the giver not the receiver.
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    Feb 22, 2012 11:11 PM GMT
    bgcat57 saidI actually depends on the conditions under which it was given. (I'm only addressing Federal tax here and not state and local taxes.)
    Did you do anything for it (not being snarky but literal) such as in sign for it, provide a service or item or agree upon something that required you accept it or acknowledge it's receipt via signature.
    Secondly, did they claim on their income taxes that they provided you, specifically, with this gift. Technically, if they give a gift greater than $10,000.00 in a single year, it's their responsibility to report it. You may not need to report it as the receiver but the giver has to report it.
    If none of those things were done, you don't have to claim it as income.
    This is based on tax law from about 4 years ago. I don't know if anything has changed in that time.
    "A gift" in terms of tax law is that which you've done nothing for. As an example, a winning lottery ticket is not a gift for 2 reasons. 1. You had to purchase the ticket. 2. You have to sign the ticket to collect the winnings.
    I should also point out for clarity that the Gift Tax that meninlove refers to the giver not the receiver.


    THANK YOU VERY MUCH!!! Yours is the ONLY answer that makes sense.
    SwimguyChicago came very close also!!
    Most of you missed the point that I am the recepient.l...NOT the giver. I have already been through all of the IRS crap...and everything refers to the
    GIVER. I have read the pages that MeninLove linked to....it does NOT refer to the receiver...which is ME.
    The gift is actually coming from a location OUTSIDE the U.S., so the givers tax will be taken care of there...not here.
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    Feb 22, 2012 11:14 PM GMT
    If someone gave me $100,000.00.USD I'd throw it in their face and bitch at them for being such a cheap bastard.
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    Feb 22, 2012 11:33 PM GMT
    paulflexes saidIf someone gave me $100,000.00.USD I'd throw it in their face and bitch at them for being such a cheap bastard.


    Yeah...right. .icon_rolleyes.gif
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    Feb 22, 2012 11:35 PM GMT
    FriendsOnly said
    I'll pose this as a hypothetical question for now...
    If someone close to you gave you $100,000, would you be required to report that as income to the IRS?? If it IS taxable, what would you call it (as far as "income" is concerned) ??

    Try to keep the snarky comments to yourself.... icon_rolleyes.gif


    You must have that good dick. Oop...was that snarky? icon_lol.gif

    I'm joking.
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    Feb 23, 2012 2:37 AM GMT
    Move to Canada..... pretty sure our laws are different.... if you win anything here you don't have to pay tax on it....
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    Feb 26, 2012 5:41 PM GMT

    I have confirmed the most responsible post. There is NO tax liability on the receiver!!
    Not sure why it didn't occur to me before, but I suddenly remembered that I have a nephew who has had his own CPA firm in the D.C area for nearly 30 years. He confirmed what I was hoping for......YEA!!!!! ..icon_biggrin.gificon_biggrin.gificon_biggrin.gif
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    Feb 26, 2012 8:15 PM GMT
    bgcat said, "I should also point out for clarity that the Gift Tax that meninlove refers to the giver not the receiver."

    That's right, I did, because that's the only tax there is to be paid, and by whom. In other words, no taxes on the recipient. I should have been clearer.

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    Feb 26, 2012 8:16 PM GMT
    FriendsOnly said, "I have confirmed the most responsible post."

    lol, so my post was irresponsible? OK.
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    Feb 26, 2012 9:36 PM GMT
    Are you gonna spend it all on butter?
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    Feb 27, 2012 5:04 PM GMT
    meninlove said FriendsOnly said, "I have confirmed the most responsible post."

    lol, so my post was irresponsible? OK.


    Simply a matter of semantics, dear one. OK, let's say "correct" instead.
    And, yes, perhaps you could have been clearer in your first response.
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    Feb 27, 2012 5:15 PM GMT
    bgcat57 saidI actually depends on the conditions under which it was given. (I'm only addressing Federal tax here and not state and local taxes.)

    Did you do anything for it (not being snarky but literal) such as in sign for it, provide a service or item or agree upon something that required you accept it or acknowledge it's receipt via signature.

    Secondly, did they claim on their income taxes that they provided you, specifically, with this gift. Technically, if they give a gift greater than $10,000.00 in a single year, it's their responsibility to report it. You may not need to report it as the receiver but the giver has to report it.

    If none of those things were done, you don't have to claim it as income.

    This is based on tax law from about 4 years ago. I don't know if anything has changed in that time.

    "A gift" in terms of tax law is that which you've done nothing for. As an example, a winning lottery ticket is not a gift for 2 reasons. 1. You had to purchase the ticket. 2. You have to sign the ticket to collect the winnings.

    I should also point out for clarity that the Gift Tax that meninlove refers to the giver not the receiver.


    Under the minimal assumptions we've been given: BG is right ... however his annual gift limit isn't correct.

    The annual gift tax exemption is 13k for 2012 per person. So I could give 1 person 100,000 and be hit with Gift Tax on the 87,000 (100,000-13,000)

    However they (the giver) could start working into their lifetime exemption if needed, or this year they can use the increased 5M limit until 12/31 (we'll see what happens in Congress if they extend)
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    Feb 27, 2012 5:25 PM GMT
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