Last day for the taxation year 2015 [
Surprise - mom and dad gave you a nice check! Perhaps it is enough for dinner, or perhaps it is more of an "early inheritance."
Anyway, do you need to worry about paying tax on your gift?
Annual limits before the IRS takes notice
First, a gift must be large enough before the IRS notes.
a gift of $ 14,000 or less in a calendar year (2015 and 2016) do not even realize.
If a couple is a common property donation, the IRS considers the gift to give half each. Mom and Dad can give $ 28,000 without worries.
A couple may also give an additional gift of up to $ 14,000 to each of his son-or daughter-in-law.
The efficacy annual limit of a couple to another couple, therefore, is $ 56,000 ($ 14,000 x 4 = $ 56,000).
gifts that do not count
Some money transfers never considered gifts, regardless of the amount.
for the gift tax, there is not a gift if:
- is given to a husband or wife who is a US citizen. Special rules apply to spouses who are not US citizens.
- is paid directly to an educational institution or medical for medical expenses of a person or tuition. (It does not need to be a child, or even a parent, for this exception.)
Tax on gifts are not a problem for most people
the person making the gift filing the tax return the gifts, if any, and pay no taxes.
If someone gives you more than the exclusion amount of tax on the annual donation ($ 14,000 in 2015 and 2016), the dealer must file a tax return on donations . That does not mean they are the gift tax.
For example, someone gives you $ 20,000 in a year, and you and the dealer are both unique. The donor must file a tax on the gift, showing a donation of more than $ 6,000. ($ 20,000 - $ 14,000 = $ 6,000 exclusion)
Each year, the amount that a person gives others the annual exclusion accumulates until it reaches the shelf life excluding tax gift.
Currently, a taxpayer does not pay gift tax until they have given more than $ 5,430,000 in life (2015).
Is the gift recipient ever having to pay gift tax?
If the donor does not pay taxes, the IRS can collect from you.
However, most donors who can afford to make large enough gifts to be subject to tax on the gift can also afford to pay the tax on donations.
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