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Does anyone know if taxes should be paid on cash gifts?

We received about 15,000 in cash gifts over the last year and I am curious as to whether we owe taxes on it. Hubby has an appointment with the people who do our taxes but I am impatient. Also what kind of documentation would we need to provide?

 
Anonymous

Asked by Anonymous at 9:43 PM on Jan. 4, 2010 in Money & Work

This question is closed.
Answers (9)
  • I believe that you have to pay taxes if you receive more than $12,000 from one individual in a calendar year. However, I am not a tax professional. Call the IRS 1-800-829-1040 - Hours of Operation: Monday – Friday, 7:00 a.m. – 10:00 p.m. your local time (Alaska & Hawaii follow Pacific Time).
    rkoloms

    Answer by rkoloms at 7:51 AM on Jan. 5, 2010

  • Did the gifters give you a W2?? If not, then hec no, don't pay taxes on that! lol
    GoodMomma24-7

    Answer by GoodMomma24-7 at 9:49 PM on Jan. 4, 2010

  • You would have to look up with the limit is. I do think that $15K is the limit for this year, but I could be wrong. If I'm right, then you will have to pay taxes on it.
    Christina807

    Answer by Christina807 at 10:25 PM on Jan. 4, 2010

  • If you received 15K all at one time all from one person, then maybe you owe taxes on it. If you received it from different people at different times then probably not. Ask your tax person to be sure.
    Katt709

    Answer by Katt709 at 10:44 PM on Jan. 4, 2010

  • wouldn't take any changes by getting advice here i would stay with the professionals---nothing worse than not claiming something only for it to come back a couple of years later as fines and audits.
    ohio4

    Answer by ohio4 at 12:18 AM on Jan. 5, 2010

  • You don't have to do anything the person who gave you money has to file a gift tax return if they give over the amount allowed. That doesn't mean they pay any taxes but they have to report it.
    Anonymous

    Answer by Anonymous at 1:08 AM on Jan. 5, 2010

  • The annual exclusion for 2009 was increased to $13,000, the person who gave you the gift pays the taxes, you may have to report it since it was over the exclusion amount depending on several factors. Check out IRS Publication 950 for more info.
    Anonymous

    Answer by Anonymous at 1:51 PM on Jan. 6, 2010

  • Anon:51 said -The annual exclusion for 2009 was increased to $13,000, the person who gave you the gift pays the taxes


    This is correct - it is the person GIVING the gift that may have to pay GIFT TAX.  If what you received was truly a gift and not any form of compensation or sales proceeds then you will not have any tax liability as a result of the gift.

    Anonymous

    Answer by Anonymous at 5:53 PM on Jan. 6, 2010

  • Awesome Ladies, thanks for the specifics!
    Anonymous

    Answer by Anonymous at 1:23 PM on Jan. 10, 2010

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