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Old Sep 30, 2013, 10:27 PM   #1
IGregory
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Join Date: Aug 2012
Taxes on Money provided by a Family Member

Is anyone familiar with an IRS rule that requires any income above $9,999 (or some other amount) must be reported?

The situation is this - a dad during the course of a calendar year gives his adult daughter $10,000. Is that amount taxable for the daughter where she received it from her father?

I've heard different opinions. Note this is a US question.

Thanks
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Old Sep 30, 2013, 10:38 PM   #2
citizenzen
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Join Date: Mar 2010
This from the people who do my taxes ...

Quote:
The Gift Tax Made Simple

The first thing to know about the federal gift tax is that gift givers—not gift recipients—have to pay it. Thankfully, you won’t owe the tax until you’ve given away more than $1 million in cash or other assets during your lifetime. The lifetime exclusion will be raised to $5.12 million starting in 2012. If you’re married, your spouse is entitled to a separate $5.12 million in 2012. So actually owing the gift tax is not a concern for most folks. But you may still have to file gift tax returns even though you don’t owe any tax. So please keep reading.

The annual gift tax exclusion provides additional shelter

The annual federal gift tax exclusion allows you to give away up to $13,000 in 2012 to as many people as you wish without those gifts counting against your $5 million lifetime exemption. (After 2012, the $13,000 exclusion may be increased for inflation.)

Say you give two favored relatives $20,000 each in 2012 and give another relative $10,000. The $20,000 gifts are called taxable gifts because they exceed the $13,000 annual exclusion. But you won’t actually owe any gift tax unless you’ve exhausted your lifetime exemption amount. Assuming you haven’t, the two taxable gifts simply reduce your lifetime exemption by $14,000 [($20,000 - $13,000) x 2 = $14,000]. The $10,000 gift is ignored, because it’s below the $13,000 annual exclusion.

If you give three individuals $13,000 each in 2012, these gifts are ignored because they don’t exceed the annual exclusion. So at the end of 2012, your lifetime exemption will be $5,106,000.

https://turbotax.intuit.com/tax-tool.../INF12127.html
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Old Oct 1, 2013, 08:53 AM   #3
IGregory
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Quote:
Originally Posted by citizenzen View Post
This from the people who do my taxes ...
Thanks very much citizenzen.
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